Letters: Can we be friends again?
[Re: UK’s leading fintech bosses call on government to ramp up efforts to overhaul regulation, Feb 21]
I’m surprised to see fintech leaders calling on the government to overhaul regulation. A year on from the Kalifa Review, and with investment hitting a record $37.3bn in 2021, the UK’s fintech space is thriving. I’d argue this country’s regulators are doing a fine job.
But fintechs are not isolated players. The vast majority can only operate because they have access to established financial institutions’ infrastructure. The real problem fintech startups are faced with has little to do with regulation, but a lot to do with accessing appropriate banking infrastructure.
Traditional banking infrastructure is dominated by the incumbent players – HSBC, Lloyds, NatWest – and doesn’t work well with innovative fintech.
They must be more open and embrace working opportunities with new fintech players.
It’s no surprise their current closed-minded approach forces UK-based fintechs into partnerships with banks abroad.
If the regulator is to do something, it shouldn’t be to overhaul regulation, but to create rules on working together.
It needs to advise the government on how they can develop a stronger synergy between traditional banks and fintechs. This is what will drive continued fintech innovation in the UK.
Ivan Zhiznevskiy