Fintech Pledge launched to further strengthen UK’s fintech sector
Tech Nation has today announced the launch of the Fintech Pledge with support from HM Treasury (HMT) and the Fintech Delivery Panel, to accelerate the growth of the UK’s fintech sector by enabling enhanced collaboration between banks and leading fintech firms.
A world-first initiative, the Fintech Pledge will set globally leading standards for the establishment of efficient and transparent commercial partnerships between banks and fintech firms. The key principles of the pledge rest upon the banks providing clear guidance to technology firms on the on-boarding process through a dedicated landing page, and providing clarity on progress through being on-boarded. They will provide a named contact, as well as guidance and feedback, and encourage good practice and improvement. Furthermore the pledge commits banks to implementing these principles and practices within six month of signing.
From today, banks will have the opportunity to volunteer as signatories to the pledge, with five major banks - Barclays, HSBC, Lloyds Banking Group, NatWest Group and Santander - already volunteered as early signatories through their involvement as members of the Fintech Delivery Panel.
The Fintech Pledge formalises the continued work of banks to evolve and improve their processes and engagement with the fintech sector, as increasingly tech startup companies and banks are looking to partner with each other to drive better consumer and client outcomes. Furthermore, commercial partnerships with banks are an important factor in the growth and scaling capabilities of fintechs, making increased collaboration through the pledge key to creating an environment that enables a globally competitive and world-leading fintech ecosystem.
The launch of the Fintech Pledge continues the important work already undertaken to support the UK fintech ecosystem, including in open banking and in pioneering regulatory innovations such as the Financial Conduct Authority’s regulatory sandbox. While the UK’s fintech sector is already a global leader, and is a strategically important sub-sector for the UK economy, the Fintech Pledge will help to ensure that the UK remains the best place to start and scale a fintech company.
The Fintech Delivery Panel is also pleased to welcome new members. Established in 2017 by Tech Nation at the request of HM Treasury, the panel is made up of leaders in UK fintech as well as the five largest banks in the UK. The new members include representatives from Monzo, Transferwise, OakNorth and Atom Bank, as the panel moves to chapter 2.0, tackling new objectives alongside existing work, including looking at the challenges and opportunities presented by COVID-19, and the UK’s Exit from the EU.
Victoria Roberts, Director of Fintech Delivery Panel at Tech Nation, commented: “Building partnerships with established institutions is a fantastic route for fintechs to drive positive change in finance, be it underpinning new customer solutions or transforming regulatory reporting. The Fintech Pledge provides a welcome clarity, setting out clear commitments of what fintechs can expect and how best to create productive collaborations.”
“We’re excited to embark on this next phase of the Fintech Delivery Panel, welcoming new members as we launch the Fintech Pledge to underpin productive partnerships. Panel 2.0, supported by HM Treasury and powered by Tech Nation, has an important role to play bringing together fintechs, incumbents, investors and policymakers to create an innovative environment for fintech to flourish.”