The Labour Party, poised for victory in the upcoming UK general election, is urged to capitalize on the fintech sector’s potential as a catalyst for economic growth, opportunity, and inclusion nationwide, according to a report from the Tony Blair Institute for Global Change.
With Labour maintaining a substantial lead in the polls, the party, led by Keir Starmer, is anticipated to reclaim power after a 14-year stint in opposition. Former Prime Minister Tony Blair has endorsed a report, co-authored with the Startup Coalition, outlining a vision for leveraging one of the nation’s most prosperous sectors to advance a “progressive agenda for a mission-driven government.”
The report underscores the transformative power of fintechs in driving economic growth provided they operate within a conducive environment. This entails optimizing incentives such as R&D tax credits and share option schemes, fostering fintech export opportunities, and ensuring regulatory clarity.
Moreover, the report advocates for the formulation of a national financial inclusion strategy that prioritizes innovation. This includes initiatives like unlocking pensions for investment in startups and enhancing choices for small businesses in payment acceptance methods.
Labour has already pledged to implement an open finance roadmap, complemented by the recent establishment of a government task force. The Blair report proposes the implementation of an Open Finance framework within the first 100 days of taking office.
Furthermore, the report recommends introducing regulations for Buy Now Pay Later lending within the same timeframe, alongside the mandate for financial education in primary schools by 2025.
Jeegar Kakkad, Director of Government Innovation at the Tony Blair Institute for Global Change, emphasizes the pivotal role of fintech startups in dismantling barriers to financial opportunity across the UK. By formulating a national financial inclusion strategy with fintech at its core and introducing innovations like Open Finance, the report aims to enhance choice and competition in financial services, empowering individuals and communities to seize control of their financial well-being as never before.
Source: finextra.com
