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The UK doesn’t need to tear down its regulatory framework, as suggested in Andy Haldane’s piece “How to dismantle the UK’s regulatory Tower of Babel” (Opinion, February 8). But it does need a regulatory system that is faster, simpler and technology-enabled — one designed to open up new services and markets while enabling innovation.
This is a widely held view among the businesses I represent in the fintech sector. Investors and innovators seek a regulatory regime that provides clarity, fosters consumer trust and instils confidence in a pro-growth, proportionate approach.
The UK has long been a global leader in fintech, consistently receiving more investment than anywhere else in the world bar the US. Fintechs make up more than half of the UK’s 40 tech unicorns.
However, this leadership is at risk as other nations swiftly adopt progressive regulatory frameworks that provide stability, encourage investment and create a competitive advantage. Without decisive action, the UK could fall behind in the race for fintech dominance.
Some of the UK’s financial regulations were written 50 years ago, long before the rise of AI-driven financial services, buy now, pay later platforms, and open finance. A regulatory model fit for today must embrace so-called Regtech solutions, leveraging AI and digital verification to achieve compliance more efficiently and cost-effectively.
This is also the moment to finally capitalise on our Brexit premium. The UK has an opportunity to adopt a more innovation-friendly rule book than the EU in high-growth areas like crypto assets, buy now, pay later, and access to affordable financial advice powered by AI and open finance.
The government has rightly prioritised AI and emerging technologies, but it is missing a crucial opportunity to strengthen one of its fastest-growing and highest-potential industries.
Janine Hirt
Chief Executive, Innovate Finance
London EC2, UK
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