New national fintech center to be launched at Leeds event

Today, at an event in Leeds, the National FinTech Center of Excellence will be officially launched, aiming to accelerate the growth of the sector and help it reach a truly global scale.

The Center for Finance, Innovation and Technology (CFIT) is the first of its kind in the world and is funded by the Treasury and the City of London Corporation in the amount of £5.5 million.

This new body seeks to build on the dominance of the UK fintech sector, which supports some 2,500 firms, tens of thousands of jobs in the UK and is second only to the US in fintech investment, ahead of economic giants like China. and India.

This will provide a much-needed boost to people and businesses across the country, allowing them to capitalize on new waves of technological change and innovation, expanding consumer choice, cutting costs and boosting company efficiency.

Treasury Secretary for Economic Affairs Andrew Griffith said: “The UK is the world’s leading destination for fintech growth and investment – ​​a true British success story that is spreading across the UK. Today’s launch of the Center for Finance, Innovation and Technology doubles that by promoting prosperity and investment in exciting cities for growth and innovation such as Leeds.

“It is also great to see the British Infrastructure Bank fulfilling its mission of investing in the clean energy revolution and much needed infrastructure, using £22bn of taxpayer money to help communities across the UK.”

Charlotte Crosswell OBE, CFIT Chair, said: “The launch of CFIT today represents a significant moment for the UK fintech sector and our economy as a whole. This organization will allow us to come together as a sector to begin breaking down the barriers the fintech sector faces, creating a clear path for our homegrown fintech companies to achieve global scale, influence and success. Today’s announcement marks an important first step in our work to support the growth and development of the UK fintech sector by empowering its talented innovators and pioneers across the country.”

“I am thrilled to see the Center for Finance, Innovation and Technology (CFIT) – one of the key recommendations of the 2021 Kalifa Review – open today in Leeds.” Ron Kalifa, Chairman of Network International and author of the Kalifa Review of UK Fintechcomments, “The Center will promote collaboration between industry, academia and policy makers, promote innovation and accelerate the adoption of new technologies for businesses and consumers. I have no doubt that this will enable the UK fintech sector to become more competitive and I look forward to the impact this will have on the whole of the UK in the coming weeks, months and years.”

The center was created in response to Ron Kalifa’s review of British fintech. Since this report was published in 2021, the government has been working with the entire industry and regulators to implement recommendations, including introducing an accelerated visa system to scale up fintech, implementing the FCA scale to allow innovators to test new products, and reforming our system. a listing regime to maintain the UK’s position as the dominant access point for capital markets in Europe.

At the launch event, CFIT will announce new coalitions of experts from finance, technology, academia and politics. They will focus on helping fintechs achieve truly global scale, building on the UK’s recent success that saw the UK grow from two unicorn firms (valued over $1 billion) in 2020 to today where we have more than 20 – almost half of all companies. fintech unicorns in Europe.

CFIT will announce the establishment of financial innovation hubs covering a wide range of countries and regions in the UK, including in key growth centers such as Leeds. Since 2020, the city has seen a huge growth in fintech companies, with the number of fintech companies more than doubling to 107 and their valuation doubling to reach £710 million, providing over 7,500 jobs.

CFIT Chair Charlotte Crosswell will also announce a number of new partnerships that she and her team have agreed to support CFIT’s growth drive. More details on these new partnerships and which areas will be established as hubs of innovation will be shared at the event.

Ahead of the launch, Economics Minister Andrew Griffith MP will visit the UK Infrastructure Bank (UKIB) site in Leeds, where he will officially open the expanded office space for UKIB staff, which is preparing to host around 280 staff. Currently, the Bank employs about 180 employees, the number of permanent employees is constantly increasing.

Since its inception 20 months ago, the bank has announced ten significant investments in sectors ranging from solar to fiber optic broadband, and has raised £4.6bn of private funding in the process.

City of London Corporation policy chairman Chris Hayward said: “The UK fintech sector is a true British success story. The launch of the Center for Finance, Innovation and Technology (CFIT) today will help maintain our global dominance. I look forward to continuing our collaboration with CFIT to further unlock the potential of this sector.”

UK Infrastructure Bank CEO John Flint said: “The fact that we are anchored in Leeds is a key part of our identity. This is in line with our mission to stimulate regional and local economic growth. It also makes us part of a growing movement with many other important organizations such as Channel 4, the Financial Conduct Authority and the National Infrastructure Commission establishing or expanding their bases here. I am grateful to the minister for helping us celebrate this milestone as we expand our footprint in the city.”

Today’s statements confirm the British Chancellor’s ambition to become a tech superpower, as he recently outlined in his Bloomberg speech. And they are fulfilling the prime minister’s five priorities by helping the economy grow.