{"id":80717,"date":"2017-04-12T09:01:00","date_gmt":"2017-04-12T09:01:00","guid":{"rendered":"http:\/\/mostafa.openonline.co.uk\/?guid=2edb1dbbab3885ed1757606a704a6a99"},"modified":"2017-04-12T09:01:00","modified_gmt":"2017-04-12T09:01:00","slug":"speech-fintech-will-transform-the-way-we-live-and-do-business-says-the-chancellor","status":"publish","type":"post","link":"https:\/\/mostafa.openonline.co.uk\/?p=80717","title":{"rendered":"Speech: ‘FinTech will transform the way we live and do business’, says the Chancellor"},"content":{"rendered":"
\n

This fantastic building has a proud history as an international marketplace.<\/p>\n

One-hundred-and-forty years ago, it opened as the new home of Billingsgate fish market \u2026the largest fish market of its kind in the world.<\/p>\n

But Billingsgate\u2019s heritage as a place of commerce and free trade goes back even further\u2026<\/p>\n

\u2026ever since a 1699 Act of Parliament made it \u201ca free and open market for all sorts of fish whatsoever\u201d\u2026<\/p>\n

\u2026with a single exception: the sale of eels\u2026<\/p>\n

\u2026which was restricted to Dutch fishermen, in recognition of their help in feeding the people of London during the Great Fire.<\/p>\n

An early trade agreement that I am sure Prime Minister Rutte will remember during the upcoming negotiations\u2026
\nGlobal ambition<\/p>\n

\n

Find out more about FinTech Week 2017.<\/a><\/p>\n<\/div>\n

Of course when this building opened the world was, once again, embarking on an industrial revolution\u2026<\/p>\n

\u2026and, like the first, this second industrial revolution was led by British ingenuity and British design.<\/p>\n

And whereas the First was characterised by the mechanisation of textile production in the North of England\u2026<\/p>\n

\u2026and the advent of the steam engine, first built in the West Midlands\u2026<\/p>\n

\u2026the Second saw steel production in Yorkshire take the place of iron\u2026<\/p>\n

\u2026the first modern power station constructed in Deptford\u2026<\/p>\n

\u2026the first commercial oil refinery in West Lothian\u2026<\/p>\n

\u2026and the first commercial telegraph system, just down the road in Euston.<\/p>\n

For the first time, merchants in London could send an order to suppliers in India, China or the United States along our international network of telegraph lines\u2026<\/p>\n

\u2026to be shipped in steel-built steamships\u2026<\/p>\n

\u2026refrigerated where necessary\u2026<\/p>\n

\u2026and then distributed by rail to all corners of our country.<\/p>\n

These breakthroughs drove the first major wave of globalisation\u2026<\/p>\n

\u2026sustaining our economies until the breakthroughs in computing technology and the creation of the World Wide Web\u2026<\/p>\n

\u2026led to what is now referred to as the Third Industrial Revolution.<\/p>\n

Today we are on the brink of yet another industrial revolution.<\/p>\n

One that has the potential, once again, fundamentally to transform the structure of the global economy, and the way we live our lives.<\/p>\n

And once again it is British invention and entrepreneurial spirit that is at the forefront of the technologies\u2026<\/p>\n

\u2026such as artificial intelligence, robotics, big data analytics, biotech and FinTech\u2026<\/p>\n

\u2026that collectively are the drivers of what has become known as the Fourth Industrial Revolution.
\nFinTech<\/p>\n

And here in London, it is the combination of financial innovation with available venture capital\u2026<\/p>\n

\u2026and the world\u2019s largest international financial services marketplace\u2026<\/p>\n

\u2026that has put this city at the forefront of the FinTech revolution, changing the way in which financial services are accessed and delivered.<\/p>\n

Just as with the telegraph and telephone in the 1870s\u2026<\/p>\n

\u2026the first ATMs in the 1960s\u2026<\/p>\n

\u2026and the arrival of online banking in the 1980s\u2026<\/p>\n

\u2026FinTech will transform the way we live and do business.<\/p>\n

Whether it is cashless transactions between friends\u2026<\/p>\n

\u2026sending remittances to family in other countries\u2026.<\/p>\n

\u2026or apps that automatically invest savings at the best rates\u2026<\/p>\n

\u2026FinTech provides consumers with better services, more choice, and lower costs.<\/p>\n

And as I found on my recent trip to India\u2026<\/p>\n

\u2026it has the potential to transform financial inclusion across the developing world too\u2026<\/p>\n

\u2026with more than a billion people now biometrically enrolled in that country and 220 million new bank accounts opened in the last 18 months alone.<\/p>\n

For businesses, it can mean access to new and cheaper credit\u2026<\/p>\n

\u2026as digitally enabled disintermediation links savers and businesses directly\u2026<\/p>\n

\u2026through peer-to-peer lending, crowdfunding and smart lenders with innovative distribution techniques using technology to power credit approvals for on-line SME lending.<\/p>\n

And apps that automate firms\u2019 compliance processes \u2013 so-called \u201cRegTech\u201d\u2026<\/p>\n

\u2026have the potential dramatically to cut costs too.<\/p>\n

This market is growing at a tremendous pace\u2026<\/p>\n

\u2026and with hundreds of millions of people worldwide entering the digital financial system every year that growth shows no sign of abating.<\/p>\n

Over the last few months, I have visited Barclay\u2019s FinTech accelerators in Cape Town and in Mumbai, and seen the impressive successes they are achieving.<\/p>\n

So, I am delighted to announce today that next month Barclays will open its new flagship, \u2018London Rise\u2019\u2026
\n\u2026the largest FinTech accelerator of its kind in Europe, offering over 500 workspaces for start-up innovators.<\/p>\n

And, also today, HSBC and Tradeshift have confirmed that their new \u2018procure-to-pay\u2019 product will go live in July\u2026<\/p>\n

\u2026allowing businesses to manage their entire supply chain and working capital requirements in one place, from any device\u2026<\/p>\n

\u2026a great example of a partnership between a banking giant and a FinTech entrepreneur to develop practical solutions to support everyday businesses.<\/p>\n

Today is about the UK as the global FinTech hub.<\/p>\n

About bringing 450 investors, drawn from every continent\u2026<\/p>\n

\u2026together with 100 of Britain\u2019s top FinTech firms\u2026<\/p>\n

\u2026from Silicon Roundabout in London, to TechNorth in Manchester and Leeds\u2026<\/p>\n

\u2026to demonstrate how our entrepreneurs are applying their ingenuity to deliver the next steps in the FinTech revolution.<\/p>\n

We have the time zone, the language, the legal system, and the talent\u2026<\/p>\n

\u2026in the world\u2019s number one financial centre\u2026<\/p>\n

\u2026and the fastest growing tech centre in Europe.<\/p>\n

And this government is committed \u2013 through the Patient Capital Review, and the work of Sir Damon Buffini\u2026<\/p>\n

\u2026to ensuring that we have the deep pools of long-term capital, too.<\/p>\n

Taken together we have a FinTech sector that generated almost \u00a37 billion revenue last year\u2026<\/p>\n

\u2026and now employs over 60,000 people.<\/p>\n

And you don\u2019t just have to take my word for it\u2026<\/p>\n

\u2026EY and Deloitte have independently ranked the UK as the best place in the world to succeed as a FinTech firm.
\ngovernment support<\/p>\n

This is not by accident\u2026<\/p>\n

\u2026of course we have the talent, the entrepreneurs, and the markets\u2026<\/p>\n

\u2026but we also have the regulatory and tax environment to support it too.<\/p>\n

Because we have given our regulators a clear mandate to do so.<\/p>\n

The FCA has led the way internationally with their \u2018regulatory sandbox\u2019\u2026<\/p>\n

\u2026allowing firms to test their products with consumers in a safe environment.<\/p>\n

The Bank of England\u2019s FinTech Accelerator gives companies the chance to work on innovative central banking solutions\u2026<\/p>\n

\u2026while the Bank is broadening access to its settlement accounts and payment systems;<\/p>\n

The FCA are hosting a regulator\u2019s summit today, to discuss what more regulators can do to support the market\u2019s growth.<\/p>\n

The government has also played its part.<\/p>\n

In the last year we have introduced a new investors\u2019 relief, to support investment into firms looking to scale up\u2026<\/p>\n

\u2026 provided \u00a3400 million of new capital to the British Business Bank to leverage \u00a31bn of investment in UK technology businesses\u2026<\/p>\n

\u2026and through our proposal for the Royal Bank of Scotland, we will see funding for a series of initiatives, worth around \u00a3750 million, to boost competition in the UK business banking market, and to stimulate further investment in FinTech of the future.<\/p>\n

But we can do more.<\/p>\n

This government is consulting on a modern Industrial Strategy\u2026<\/p>\n

\u2026and high-growth, knowledge intensive business will be at its heart.<\/p>\n

Our tech sector already contributes a bigger proportion of our GDP than any other country in the G20.<\/p>\n

But we cannot rest on our laurels\u2026<\/p>\n

\u2026we must constantly move onward to remain the best place in the world to start and grow a tech business.<\/p>\n

Our Plan for Britain points the way:<\/p>\n

We must invest to overcome the poor productivity performance that has plagued our economy for well over a decade\u2026<\/p>\n

\u2026and that is why at Autumn Statement I announced a \u00a323 billion National Productivity and Investment Fund.<\/p>\n

We need a skills system that offers clear routes into work\u2026<\/p>\n

\u2026and that is why at Spring Budget I announced funding for new \u2018T-Levels\u2019 for 16-19 year olds.<\/p>\n

And we must embrace the technological change that has the potential to transform our economy for the better\u2026<\/p>\n

\u2026and that is why I also announced an Industrial Strategy Challenge Fund to keep the UK at the forefront of disruptive technology.<\/p>\n

We can\u2019t remain the number one place for FinTech and the other technologies of the Fourth Industrial Revolution\u2026<\/p>\n

\u2026by simply relying on our ingenuity, talent and openness\u2026<\/p>\n

\u2026we have to go out and get the business.<\/p>\n

Findings from our sponsors, EY, show that British FinTech firms most want to expand into Asia.<\/p>\n

I could sense that excitement in the delegation of FinTech firms that I took to Mumbai last week to the first UK-India FinTech Conference\u2026<\/p>\n

\u2026where we agreed with the Indian Government to work on a UK-India FinTech Bridge\u2026<\/p>\n

\u2026in addition to similar arrangements, we\u2019ve reached with China, Korea and Singapore\u2026<\/p>\n

\u2026building vital links between markets and consumers in Britain and Asia.<\/p>\n

Conclusion
\nIf the UK is going to make the most of the freedoms it will have after leaving the European Union\u2026<\/p>\n

\u2026we have to build trade links with the fast-growing economies of Asia\u2026<\/p>\n

\u2026we have to invest in the skills of the future\u2026<\/p>\n

\u2026and our economy must remain at the cutting edge:<\/p>\n

Not just of Fintech. But of AI, biotech \u2013 of every area in which we have the potential to lead the world into this new industrial revolution.<\/p>\n

The world does not owe us a living.<\/p>\n

We will have to strive and graft and fight to seize opportunities; and make the most of them.<\/p>\n

That means growing and strengthening the areas \u2013 like Fintech \u2013 in which we enjoy a comparative advantage\u2026<\/p>\n

\u2026it means maintaining and enhancing the UK\u2019s reputation as one of the best and most attractive places in the world to do business\u2026<\/p>\n

\u2026and it means ensuring we are producing the people with the skills and the aptitude to become the next wave of innovators, entrepreneurs and investors.<\/p>\n

Because while we need to continue to attract the brightest and the best from around the world to these shores\u2026<\/p>\n

\u2026we must also do better at nurturing and developing the home-grown talent to drive our economy forward in the future.<\/p>\n

Our vision of an outward-looking, Global Britain that will deliver the high-skilled, high-wage economy of the future\u2026<\/p>\n

\u2026that will power the higher living standards we all want to see for future generations.<\/p>\n

So I urge everyone here today \u2013 innovators, investors, regulators \u2013 to help us realise that vision.<\/p>\n

Help us keep the UK at the forefront of the FinTech revolution.<\/p>\n

Help us build a truly world-beating new tech sector.<\/p>\n

Let your ideas, your apps, your services, your equity demonstrate what\u2019s really possible when government, business and regulators all pull in the same direction.<\/p>\n

Working together, to build the world\u2019s greatest FinTech hub.<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

Chancellor of the Exchequer, Philip Hammond at the inaugural International FinTech Conference in London.<\/p>\n","protected":false},"author":8,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[13],"tags":[],"_links":{"self":[{"href":"https:\/\/mostafa.openonline.co.uk\/index.php?rest_route=\/wp\/v2\/posts\/80717"}],"collection":[{"href":"https:\/\/mostafa.openonline.co.uk\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mostafa.openonline.co.uk\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/mostafa.openonline.co.uk\/index.php?rest_route=\/wp\/v2\/users\/8"}],"replies":[{"embeddable":true,"href":"https:\/\/mostafa.openonline.co.uk\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=80717"}],"version-history":[{"count":0,"href":"https:\/\/mostafa.openonline.co.uk\/index.php?rest_route=\/wp\/v2\/posts\/80717\/revisions"}],"wp:attachment":[{"href":"https:\/\/mostafa.openonline.co.uk\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=80717"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mostafa.openonline.co.uk\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=80717"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mostafa.openonline.co.uk\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=80717"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}