{"id":90141,"date":"2018-03-19T17:01:53","date_gmt":"2018-03-19T17:01:53","guid":{"rendered":"http:\/\/mostafa.openonline.co.uk\/?guid=92740cd8d0eae16bbe8f3857ff2f5bcb"},"modified":"2018-03-19T17:01:53","modified_gmt":"2018-03-19T17:01:53","slug":"speech-city-minister-innovate-finance-global-summit-speech","status":"publish","type":"post","link":"https:\/\/mostafa.openonline.co.uk\/?p=90141","title":{"rendered":"Speech: City minister: Innovate Finance Global Summit speech"},"content":{"rendered":"
\n

Fantastic to see entrepreneurs, the giants of tech and finance, and the emerging players in FinTech under one roof\u2026<\/p>\n

\u2026to celebrate the success of UK FinTech\u2026<\/p>\n

\u2026and chart a future for the industry.<\/p>\n

But we don\u2019t need to navigate too far from our shores to witness how far we have come.<\/p>\n

As a former Heritage Minister, I can see this link between our past, however ancient, and the present.<\/p>\n

We should walk over to Bloomberg\u2019s new headquarters at Queen Victoria Street\u2026<\/p>\n

\u2026and admire the 405 Roman tablets found during its construction.<\/p>\n

My favourite is an old promissory note detailing the payment of 105 denarii from Tibillus to Gratus \u2013 which is now
\nthe earliest dated document found in Romain Britain.<\/p>\n

The irony that this was an ancient financial contract found in the heart of London\u2026<\/p>\n

\u2026on a tablet, roughly the size of an iPad\u2026<\/p>\n

\u2026didn\u2019t escape anyone in the City!<\/p>\n

As it always has been: the fulcrum of our financial future is right here \u2013 in London, and across the UK.<\/p>\n

All of you are the levers \u2013 moving in tandem (and in healthy competition!) \u2013 to oil the engines of growth.<\/p>\n

The world is changing so quickly that it would be an act of hubris to predict anything.<\/p>\n

But one thing feels certain: you will all play a role in shaping that future.<\/p>\n

Because FinTech will continue to transform the way we live our lives.<\/p>\n

I\u2019m very pleased to be here at IFGS<\/abbr> kicking off UK FinTech week\u2026<\/p>\n

\u2026 a week packed full of great events from Edinburgh, Leeds, the University of Durham, the London Stock
\nExchange, the FCA<\/abbr> and the Treasury\u2019s own International FinTech Conference\u2026<\/p>\n

\u2026 I wouldn\u2019t be doing my job unless I told you there is time for investors to register for this great event\u2026<\/p>\n

\u2026 an opportunity to hear from the Chancellor and other global leaders\u2026<\/p>\n

\u2026about all we are doing to make the UK a great place to invest.<\/p>\n

I would like to thank Innovate Finance \u2013 at the epicentre of the FinTech ecosystem \u2013 for doing such a great job in supporting this mandate.<\/p>\n

This event is FinTech in microcosm\u2026passion, drive, and ingenuity distilled into two days.<\/p>\n

It is only right that the sector is brimming with confidence \u2013 the UK is the best place in the world for FinTech\u2026<\/p>\n

\u2026and as Economic Secretary my mandate is to ensure it remains as such.<\/p>\n

Today I have two intentions\u2026<\/p>\n

\u2026first, to celebrate our status as a leading global FinTech hub\u2026<\/p>\n

\u2026the second is to look at how we remain the leading global FinTech hub.<\/p>\n

We are a leading FinTech hub<\/h3>\n

I hear rumblings from across the Channel that President Macron is looking to drag you all over to Paris. And I understand why \u2013 it\u2019s a great city. So, hop on a Eurostar, enjoy a weekend away, stock up on croissants etc. Then come on back to London on Monday morning to carry on making money\/go back to work\/crack on as you have been<\/p>\n

\u2026 because President Macron can\u2019t argue against hard truths: that the FinTech sector is estimated to be worth over \u00a36 billion to the UK economy\u2026<\/p>\n

\u2026generating a staggering 60,000 jobs across 1,600 firms\u2026<\/p>\n

\u2026a greater number than work in New York\u2019s FinTech sector, or in the combined FinTech workforce of Singapore,
\nHong Kong and Australia.<\/p>\n

And London has been independently verified by Deloitte as Europe\u2019s best city to launch a FinTech firm.<\/p>\n

They said of London: \u201cit has \u201cthe \u2018fin\u2019 of New York, the \u2018tech\u2019 of the U.S. West Coast \u2026 all within a 15-minute journey on public transport\u201d.<\/p>\n

For the pundits – the economic case for supporting UK FinTech is compelling.<\/p>\n

2017 was the best year on record for venture capital investment in UK FinTech.<\/p>\n

It saw \u00a31.3bn invested – spanning 224 deals, representing a 153% increase on 2016.<\/p>\n

54% of this funding came from abroad: a strong, international, vote of confidence.<\/p>\n

This is not by accident but by design \u2013 we have the talent, the minds, the markets, and the regulatory and tax environment.<\/p>\n

And the UK is now in the enviable position of being the global leader in FinTech.<\/p>\n

We don\u2019t want to shift gears, or resort to complacency \u2013 but keep up the momentum, and remain the global leader.<\/p>\n

What will this position of sustained global leadership look like? What are the ingredients to make this a reality?<\/p>\n

I can think of three: competition, capital, and connectivity.<\/p>\n

Competition<\/h3>\n

I strongly believe that the free market is the key to create wealth and fuel innovation.<\/p>\n

Driven by this compelling economic logic, the government champions robust market competition.<\/p>\n

So we welcome innovation in the delivery of financial services that promotes competition.<\/p>\n

And we know that government has a role to play in supporting a competitive environment\u2026<\/p>\n

\u2026and we fully embrace our position as a partner of British enterprise and of FinTech.<\/p>\n

But government backing is not, and should not be a blunt or misdirected instrument.<\/p>\n

Our regulators also appreciate this: which is why they rank amongst the most robust in the world\u2026.<\/p>\n

\u2026because the economy moves rapidly, so we need regulators to keep up and move at pace.<\/p>\n

Take the explosion of growth in crypto-assets.<\/p>\n

While the pipeline of opportunity presented by the underlying technology is immense, crypto-assets (such as
\nBitcoin) may pose risks.<\/p>\n

So in our upcoming Fintech Sector Strategy, the government will announce further work with the FCA<\/abbr> and Bank of England to consider these issues in more detail.<\/p>\n

And more generally, policies have been implemented to intelligently support the environment in which FinTech operates.<\/p>\n

The FCA<\/abbr> has risen to this challenge, setting up Project Innovate and the Regulatory Sandbox, seen as the global gold standard in terms of support for FinTech by a regulator.<\/p>\n

In 2015 the government also established the Payment Systems Regulator \u2013 the first of its kind worldwide \u2013 with statutory objectives to promote competition and innovation in payment systems.<\/p>\n

Government is in the privileged position to ensure that firms have both the right incentives, and the right environment to deliver cheaper, better products to consumers.<\/p>\n

Capital<\/h3>\n

The firms you represent are the future: the digital economy is growing faster than the wider economy.
\nWhich is why this government is backing you to the hilt.<\/p>\n

At Autumn Budget 2017, the government launched a 10-year action plan to unlock over \u00a320 billion to finance growth in innovative firms.<\/p>\n

This includes a commitment to support new technologies\u2026<\/p>\n

\u2026improving the domestic skills pipeline by expanding the range of technical education opportunities\u2026<\/p>\n

\u2026and overhauling the UK\u2019s digital infrastructure, including rolling out our first 5G networks.<\/p>\n

But we\u2019re not just helping companies get off the ground. We want to help you build your businesses into the sky.<\/p>\n

Since 2010, the government has reduced the rate of corporation tax from 28% to 19% today, the lowest in the G20.<\/p>\n

And we have legislated for corporate tax rate to fall further, to 17% in 2020.<\/p>\n

You will be able to keep more of what you earn, and invest more in yourselves to stay ahead of the pack.<\/p>\n

We are doubling annual investment limits in EIS<\/abbr> and VCTs for knowledge-intensive companies, and their investors.<\/p>\n

We also know that it\u2019s important that companies continue to evolve and stay ahead of the competition.<\/p>\n

So since 2013, we have doubled the generosity of R&D<\/abbr> tax credits for SMEs.<\/p>\n

We are backing this up with direct support: since 2016, we have announced \u00a37bn of investment in science and innovation.<\/p>\n

Connectivity<\/h3>\n

Despite the strides made, FinTech is not \u201cdone\u201d \u2013 we are very much at the start of this story.<\/p>\n

My priority is to ensure that FinTech continues to function in a way that works for all \u2013 and delivers benefits across society\u2026<\/p>\n

\u2026as a force for positive change right across the UK.<\/p>\n

FinTech has enormous potential to transform financial inclusion\u2026<\/p>\n

\u2026through the democratic power of information and universal connectivity.<\/p>\n

This connectivity is the natural by-product of such a dynamic ecosystem\u2026<\/p>\n

\u2026by expanding access to the unbanked and the underserved\u2026<\/p>\n

\u2026and unlocking invaluable support to people up, down, and across this country.<\/p>\n

FinTech is a route to ensure that this happens \u2013 by helping people make the most out of their money.<\/p>\n

Open Banking is a clear next step in this endeavour.<\/p>\n

It empowers customers to make the most of their data, sharing it with FinTechs, giving them access to a better range of tailored products.<\/p>\n

It opens the door to cheaper and more easily available loans for small businesses by making it easier for them to shop-around for deals.<\/p>\n

The government has also launched the Rent Recognition Challenge.<\/p>\n

Millions of families living in rented accommodation in Britain today are not getting access to credit.<\/p>\n

That is because, currently, a history of meeting your rent payments on time is not reflected in your credit score, and is not taken into account when you come to apply for a loan, such as a mortgage.<\/p>\n

The Treasury\u2019s Challenge was designed to tackle this problem.<\/p>\n

It offers a \u00a32m prize fund to UK FinTechs, to develop new solutions enabling tenants to collect their rental data, and share it with lenders and credit reference agencies.<\/p>\n

Today I am please to announce the six winners:<\/p>\n