This pledge follows a report from Innovate Finance, which indicated that fintech firms could contribute £328 billion in tax revenues by 2029, provided that ministers can unlock institutional investment and streamline data policies.

Given the vast potential for growth in the UK's fintech sector, the new treasury and incoming government must prioritise further investment. Central to Innovate Finance’s strategy is the adoption of smart data, a form of “data portability” that facilitates easier information transfer between companies.

Jeremy Baber, CEO of Lanistar, believes it is important for the UK to capitalise on fintech, and emulate the successes seen in other parts of the world to maximise its potential impact: “Whilst this early commitment from Labour is a welcome one, meaningful action within legislation and government policy is needed to follow through on these promises. Labour has campaigned on a platform of change, and so bringing that sense of vibrancy and energy to its national fintech plans has the potential to breathe new life into the industry.

“Since its exponential growth in 2022, fintech in the UK has stagnated, although the UK remains 2nd globally and is far ahead of European competitors. Nevertheless, if we look at other places worldwide, we can see the exponential growth in areas hungry for business and new technologies. LATAM is an area of interest for many and is already bringing massive investments and opportunities as their fintech sector continues to experience rapid growth. The gap between the US and the UK versus the rest of the world is closing with more competition – ultimately, great for the consumer, but if the UK seeks to stay ahead of the game, government investment in growth is sorely needed.

“Fintech is the clear future of financial services and a great source of new, innovative technology that can vastly impact the economy. It’s also a younger, more agile industry, full of like-minded young investors and individuals with a hungry appetite for success. Capitalising and cementing ties within the industry using government-backed investment is a clear sign that the oncoming UK government wants to see growth in the UK and is ready to help enact the change promised by their campaigns.

 “Last year, a study from the Corporate Finance Institute reported that one in four UK citizens have limited access to financial services, due to being low-income individuals who in turn have limited access to financial services. Steep fees levied by banks in exchange for services combined with required minimum balances are a couple of the many factors excluding the unbanked or underbanked from the security and convenience a bank account offers.

 “The agility of fintech allows technologies to be leveraged to capture this untapped market share, whilst additionally catalysing financial inclusion. With the new government’s pledge to support such technology development and advancement, it not only provides support back to the government and economy but also wider consumer support for those unbanked or untrusting of traditional financial services. Labour has the opportunity to streamline and champion the regulation of services and continue legitimise this source of market revenue.

“Supporting fledgling fintech companies needs to be a key part of any olive branch in supporting industry growth. For many businesses, funding can be a massive hurdle to otherwise innovative operations, and so government-backed investment funds – small enough and carefully controlled to avoid issues similar to the Covid bounce-back loans fraud events.  This funding can be a small initial support to create the foundations for future economic tax gains. Without investment and support for newer, growing companies alongside trusted, established fintechs, the UK cannot see the ongoing and exponential innovation that will ultimately be helping drive economic growth over the next decade and beyond.”

“I have every faith in the Labour government’s ability to work with top industry representatives and take steps to take advantage of the massive potential in economic growth. Regulation in the sector will help legitimise fintech in the eyes of the wider public, not just those in the industry with the knowledge of key developments. But in any case, Labour’s embracing of its potential is a good sign; hopefully, meaningful action to showcase support can follow.”