Investing in Britain’s fintech future

Prioritising education and skills development, a guest editorial by Fraser Stewart, co-founder of Lyfeguard

The UK’s fintech sector, a testament to the nation’s entrepreneurial spirit and technological prowess, is a force to be reckoned with. From the disruption of traditional banking by challenger banks like Monzo and Starling, to the revolutionary concept of Open Banking, and the ubiquitous contactless payment systems that have become second nature, the UK’s contributions to financial technology are undeniable. The sector has not only transformed how we interact with money but has also catapulted the UK into the ranks of global fintech leadership. 

However, this leadership is not guaranteed. A growing digital skills gap, which already costs the UK economy an estimated £63bn each year, casts a shadow over future progress. The stakes are high. The Kalifa Review, a comprehensive study of the UK fintech ecosystem, paints a promising picture, predicting that by 2030, fintech could contribute a remarkable £13.7bn to the UK economy. Importantly, 70% of this value is projected to come from job creation. The UK already enjoys a significant advantage, attracting more fintech investment than the rest of Europe combined, and is trailing only the United States. Maintaining this momentum, however, hinges on our ability to address the skills shortage with urgency and determination. 

The rapid evolution of technology, coupled with the increasing complexity of financial products, demands a workforce armed with a diverse range of skills. Software development, data science, cybersecurity, and regulatory compliance are just a few of the key areas where expertise is needed. But technical skills alone are not enough. We must also cultivate an entrepreneurial mindset among our workforce – the creativity, adaptability, and passion for problem-solving that drive innovation. 

Nurturing the next generation of fintech leaders is paramount. Educational institutions–schools, colleges, and universities–must expand their offerings in fintech-related fields. This includes introducing specialised courses and degree programmes, embedding entrepreneurship modules into the curriculum, and fostering collaboration with the industry. Guest lectures by fintech experts, internships, and mentorship programmes can provide students with invaluable real-world experience and networking opportunities. 

Yet, the future of fintech does not solely rest on the shoulders of the young. The existing workforce possesses a wealth of experience and untapped potential. Recognising the value they bring and investing in upskilling and retraining programmes is essential. With government policies, industry backing, and incentives, we can empower these individuals to adapt and thrive in the evolving fintech landscape. Continuous professional development programmes, workshops, and online courses can equip them with the latest knowledge and tools, ensuring they remain at the forefront of innovation. 

Government support plays a pivotal role. Funding educational programmes, scholarships, and research initiatives is crucial. Equally important is streamlining the visa process for international talent. Embracing a diverse pool of skilled professionals will enrich our fintech ecosystem with fresh perspectives and expertise, fuelling innovation and growth. The UK’s fintech sector should be a melting pot of ideas, drawing on the best talent from around the world. 

Regulation has been a cornerstone of the UK’s fintech success story, providing a stable foundation for growth while fostering innovation. The UK’s regulatory sandbox, a framework allowing fintech companies to test new products and services in a controlled environment, is a prime example of this approach. We must continue to lead the way with initiatives like open finance, ensuring that regulation keeps pace with technological advancements, protecting consumers while encouraging innovation. The balance between regulation and innovation is delicate, but it is a balance the UK has historically managed well. 

To retain our status as a global leader in fintech, we must act decisively. Investing in education and skills development across all generations is an imperative. It is a strategic investment in the future of our nation, ensuring the continued growth and success of the UK’s fintech sector for generations to come. The future of finance is digital, and the UK has the opportunity to shape that future. But to do so, we must invest in the skills that will power that transformation.

Related news: Digital dynamics: transforming client engagement in finance, a guest editorial by Fraser Stewart, co-founder and chief commercial officer at Lyfeguard.

Image: Lyfeguard

Guest Editorial This article was produced specially for Fintech Intel by an expert guest contributor.