The Confederation of British Industry (CBI) has unveiled a new campaign to get more businesses using fintech to fuel future growth.
The organisation, which represents 190,000 businesses, is finally waking up to the fintech craze in the UK.
The CBI’s economic strategy ‘Seize the Moment’ identified the UK’s fintech sector as a key opportunity, with a potential £32 billion additional revenues on offer by 2030. It cites statistics from Innovate Finance which show in 2021 $11.6 billion (£8.5 billion) was invested in UK fintech businesses, a 217% increase from 2020.
The CBI’s ‘Winning with Fintech’ campaign will explore how firms can work more effectively with fintech to unlock growth and efficiency opportunities – in areas including opening up new markets, improving payment flows and transitioning to net zero.
Lord Bilimoria, CBI President, states: “Businesses need all the support they can get at present. Slow growth post-pandemic and supply chain struggles have been exacerbated by the terrible conflict in Ukraine. What firms need are fair winds and following seas, with fintech featuring a flotilla of benefits, making global trade smoother, payments easier and sustainability better.”
He adds: “The CBI will champion fintech by supporting businesses of all sizes across sectors to seek solutions that will work for them.”
The CBI also wants government ministers to stay active in this sector – such as ensuring greater coordination of fintech-related initiatives and digital skills in the UK’s labour market.
Unsurprisingly, there are views from within the fintech sector about this plan.
For instance, Kosta Du, CEO of payments firm Dapio, says: “More public education is the first step towards more people tapping into the benefits of fintech. Modern payment methods such as QR code payments, open banking, and tap to pay are just some examples.”
He also wants the fintech sector to keep competitive and calls for re-establishing the ability to passport a UK financial licence abroad, an entry-level financial licence and simplifying of the know your customer regulations to help young fintechs.