Zilch, Clearscore among five UK scale-ups to get dedicated FCA support
The UK’s financial watchdog is to offer extra regulatory support to five British scale-ups as it seeks to ease the burden on fast-growing firms.
Zilch, Clearscore, Modulr, Teya and Urban Jungle have become the first companies regulated solely by the Financial Conduct Authority (FCA) to join its Scale-up Unit, which gives each firm a dedicated FCA contact to help with questions as it grows.
This includes support when launching new products, or making changes to the business as regulatory rules shift.
Philip Belamant, chief executive and co-founder of Zilch, described its selection as “recognition of what we’ve built”, while saying the company hoped to help shape how regulation develops for growing businesses.
The move comes as the FCA faces pressure from the government and industry to make Britain a more attractive place to build and expand financial businesses, while maintaining safeguards for consumers.
The watchdog has had a secondary objective to support UK growth and international competitiveness since 2023.
It has since faced calls to demonstrate how that commitment translates into practical changes for businesses rather than simply lighter regulation.
Jessica Rusu, the FCA’s chief data, information and innovation officer, said “high-growth firms play a vital role” in the economy and that the regulator wanted Britain to remain one of the best places to start and scale a financial services company.
Under the scheme, each business receives a dedicated regulatory contact and support with regulatory processes and incoming policy changes.
Six companies overseen jointly by the FCA and Bank of England’s Prudential Regulation Authority – Allica Bank, ClearBank, Monument, Nottingham Building Society, OakNorth and Zopa – joined an earlier cohort back in February.
Growth push amid tougher scrutiny
The closer relationship does not mean the companies will face less scrutiny, however, and comes as the FCA tightens rules in parts of the consumer finance market.
That includes buy now, pay later, where Zilch is a major player. The sector is being brought within FCA regulation after concerns that customers could take on debt without the protections that apply to traditional forms of borrowing.
Zilch has already spent years dealing with the watchdog, including through its so-called regulatory sandbox, which allows businesses to test new financial products under regulatory supervision.
“We’ve never shied away from engaging with regulation,” Belamant said, adding that working with the FCA had been “to our benefit”.
Modulr chief executive Myles Stephenson said “strong collaboration between industry and the FCA is critical” if companies are to continue investing and expanding in Britain.
Stephenson told Morning Wire: “While we are also expanding in global markets like the US, it was initial UK growth and investment that allowed us to do this, and we remain focused on the continued scaling and success of our UK business.”
The FCA itself has acknowledged that rapid growth can create risks. Findings published alongside Monday’s announcement from an earlier pilot involving 15 high-growth firms found businesses needed to strengthen management and risk controls early enough to keep pace with their expansion.
Teya, founded in 2019, gives an indication of the size companies can reach before entering the programme.
The payments business says it now serves more than 75,000 businesses across nine European markets, including over 30,000 in Britain, and employs around 1,500 people.
The FCA has supported more than 1,000 growing businesses through its various innovation programmes since they were launched.