As company operating within the fintech industry we are particularly interested in items that aim to have a positive impact on digital innovation, business development and attracting funding.
Stand out points:
An examination of where regulations are preventing the use of emerging technologies and what can be done to break down those barriers. “The government will engage with business to determine where regulations inhibit innovation, including disruptive technologies, and develop a programme for addressing this in the next Parliament,” said the Budget Book.
“The Financial Conduct Authority’s (FCA) Project Innovate (an initiative we are already engaged with) will work with HM Treasury and the Prudential Regulation Authority (PRA) to investigate the feasibility of developing a regulatory ‘sandbox’ for financial services innovators. The FCA, working with the PRA, will also identify ways to support the adoption of new technologies to facilitate the delivery of regulatory requirements (so-called ‘regtech’).
Popular investment schemes to help with startup funding are being extended, it said: “The government will make amendments to the Seed Enterprise Investment Scheme (SEIS), Enterprise Investment Scheme (EIS) and Venture Capital Trusts (VCTs) to ensure that the UK continues to offer significant and well-targeted support for investment into small and growing companies, in line with new EU rules.
There was a particular focus on supporting financial technology (fintech) startups (through Innovate Finance) an area where the UK is a recognised world leader: “The government is determined to drive increased competition in the banking market, so that banks, alternative providers and fintech firms compete vigorously, on a level playing field, to win and retain customers.
Plans for a standard API to allow new entrants into the banking sector to access data held by bigger rivals will also go ahead: “The government has confirmed its commitment to deliver an open API standard in UK banking and, working with the banking and fintech industries, set out a detailed framework for its design by the end of 2015. “This will enable fintech firms to make use of bank data on behalf of customers in a variety of helpful and creative ways, and ensure the UK remains at the forefront of developments in financial technology and innovation.”
If implemented to full potential the proposed measures will have a signifiant positive impact on the industry, and our company.