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A coalition of leading UK FinTech firms, including Revolut, Clearbank, and Zilch, has expressed concerns to the government about the regulatory challenges stifling their growth. In a recent meeting with City Minister Tulip Siddiq, the FinTech companies warned that if key industry issues are not addressed, the UK risks losing its competitive edge in the global FinTech sector.
According to sources cited by Bloomberg News, the FinTech representatives raised several critical concerns, including the slow pace of regulatory decision-making, restrictive rules that hinder growth and competition, and the difficulties in accessing sufficient capital. They also pointed to the obstacles companies face when attempting to go public, warning that these challenges could push firms to seek initial public offerings (IPOs) outside the UK.
Minister Siddiq reportedly acknowledged the issues and promised to relay the concerns to the Treasury, committing to further meetings with the sector in the coming months.
A Treasury spokesperson affirmed the government’s commitment to supporting the FinTech industry, saying, “We want to embrace FinTech. That includes unlocking billions of pounds of investment in the UK economy through our pension review so that more innovative companies can access the capital they need to grow.”
Despite the UK’s position as a leading FinTech hub, there is growing fear that regulatory constraints may cause FinTech firms to look elsewhere for growth opportunities. The sector, which is expected to contribute £328 billion to the UK economy over the next five years, is crucial to maintaining the country’s financial dominance.
Revolut, recently valued at $45 billion, is one of the most prominent examples of the UK’s FinTech success. However, earlier this year, Francesca Carlesi, CEO of Revolut UK, warned that London could lose ground to competitors like Paris and New York in attracting FinTech startups. “Something has shifted in the last two or three years,” Carlesi noted, adding that despite these concerns, London remains a strong contender for Revolut’s potential IPO.
Revolut Chair Martin Gilbert also suggested in July that the firm was still at least a year away from going public and was open to considering various markets for its IPO. However, there have been reports that the UK Treasury is keen for Revolut to list domestically, with Minister Siddiq expected to meet with the company again later this year.
The ongoing dialogue between FinTech companies and the UK government highlights the urgent need for reforms that can foster innovation and sustain the country’s leadership in the global FinTech industry.
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