In exactly five weeks today…
The people of the UK will have cast their votes and we’ll all know precisely who will be elected to lead and steer this great country. As a proud UK-born and rapidly scaling business, our CEO & Co-Founder, Philip Belamant, had the privilege of being asked to stop by and speak with Bloomberg's Lizzy Burden yesterday morning. They explored how we're thinking about the UK market beyond the upcoming election. See below for the full interview... 📺
The next government will inherit stewardship of a trillion-dollar, world-leading UK technology sector—the third largest on the planet. Just imagine the possibilities if we get policy right and, crucially, can provide absolute clarity.
The Unicorn Council for UK FinTech #UCFT that Zilch co-founded earlier this year with Innovate Finance, is collectively guiding a £50 billion wave of potential future UK IPOs. This unique assembly of visionary leaders, who today run the most valuable private fintech companies in the UK and generate colossal economic value for the country, is co-chaired by Philip alongside CEOs Janine Hirt, Francesca Carlesi of Revolut, and Charles McManus of ClearBank. They possess a clear vision of the core handful of policies needed right now to transform perceptions and accelerate economic growth in the UK.
📢 As Philip said to Bloomberg: "Let’s remove any excuse for the stakeholders here in the UK to invest in the economic growth of the country. Let's just get rid of those excuses..."
#Zilch, Ryan M.Michael Carter#InnovateFinance, #Payments#UnicornCouncil#Bloomberg#UK#GeneralElection#GE#BNPL#Regulation
Now here in the UK, the tech sector has been warning that it risks falling behind, with many of its success stories increasingly choosing to list abroad. One company that's considering an IPO is the British buy now, pay later platform Zilch. Now, ahead of the summer election on July the 4th, I'm pleased to say I'm joined by the CEO and cofounder of Silt, Phillip Bellamont. Phillip, lovely to have you in the studio with me. It's interesting you're working on making the UK a bigger hub for financial innovation you're part of. Innovate finances, Unicorn Council, I wonder whatever government we have next, whatever colour they are, what do they need to do to make it more attractive? Well, what's interesting is I think it's about now five weeks to the day we are all going to discover who's in the seat. And what's really interesting is that it doesn't matter who that is, they are going to inherit a trillion dollar technology sector that's the third largest on the planet, right? And part of that and major. What is fintech? So companies like Zilch are really going to be very critical to the growth of the economy moving forward. And we really need to see whoever is in the seat leaning into businesses like Zilch near peers, making sure they can continue to grow and thrive here in the UK, and ensuring ultimately that we see that economic growth that's going to drive the country forward. And certainly we're excited about the fact that conversations with both parties are certainly going that direction. Everyone seems pro business, people are certainly very supportive of Unicorn council and the types of policy that we're calling for. And that's the last thing I will say on this is we are certainly calling for clarity on policy. That is what's going to drive this. Well, I hope we're going to get some in the coming days and weeks with the manifestos dropping. I hear that the Labour leader, Kier Starmer has been having breakfast with every CEO in the city. Has Labour rolled out the red carpet for you? Absolutely. I mean, we actually, I keep saying. Just we sort of we are seeing this on both sides. So both parties are really leaning in and across the spectrum, we're having numerous conversations that are very productive around policy, how we drive things forward. And with the Unicorn Council, which we cofounded with Innovate Finance, as you mentioned, we now have 50 billion of market cap companies in that council. If you think of it this way, that could be 50 billion of listings coming to the LSE would be Footsie 100 companies. And so when we talk about policy, we've refined the list of all of these companies asks to about five major points so that we can communicate this succinctly to Downing St. and policymakers. And those are those are across things like for instance, entrepreneurs relief, ear MRI, that R&B and stamp duty. And the whole idea here is let's remove any excuse for the stakeholders here in the UK to invest in the economic growth. Of the country. Let's just get rid of those excuses. And what I mean by that is if you think about things like pension funds. Are they buying and holding British stocks? Just 30 years ago, almost 50% of of pension money was in British companies. Today it's less than 5%. How do we change that? And at the same time, how do we get retail investors to buy and hold British stocks? I'm sure you know this. Today you can buy and hold a Tesla shares, a retail investor for free, but a Rolls Royce share is going to cost you stamp duty. Why is that the case? OK, well the polls suggest that Labour are going to be the next government. You say you've spoken to both. The parties, but you can tell me whether they're coming through on these demands by answering my next question. Are you gonna do your IPO in London over New York? Well, that's a great question. I'll shareholders would love to talk to you about that too. Break some news for us. Exactly. I mean, look, we've always said and and you mentioned this earlier, you know we're a big advocate for companies building the business here, growing here, staying here, listing here and we'd certainly love to see that happen. There are certain things that need to be done and we're in. Conversation with the LC, again, the LLC is leaning in to all of these companies and saying, tell us, what do you need to see? Of course we need to see liquidity. We need to see policies to help drive that liquidity. We need see interest rates starting to come down so we can drive capital back to equities. They need to start working a bit harder for the yield and that'll open markets back up. And if we can then get policy in place to have pension funds buying and holding British stocks at scale, we can get retail investors buying and holding. Their stocks, you start to get an environment where we've removed all excuses for companies not to list yet. So, you know, that's the way we're thinking about it. If we can get these things right, I'm not sure why companies wouldn't consider very strongly listing here. Well, the pension fund is point is a controversial one. Do you think that it should be mandatory that they should hold a certain amount of British assets? I'm not sure it's easy to make it mandatory. You know, the UK naturally is a very international scene when it comes to investment if you look at the USA. A lot of the money is domestic capital. So I don't think we wanna kill that culture here. We want international capital here in the UK and mandating a portion of this from pension funds may may somewhat stifle that. What we need is policy that creates the right behavior from pension funds. How are they being measured? Is it on the cost of investment or is it on the return of their investments they making? And if we tweak this, we might see that the behavior changes to to chase down yield. Real yield rather than just the cost of making those investments and being very protective. So I think mandating a portion is quite difficult, but there are policies that could be put in place to drive this agenda. Yeah, but of course that's not the only policy that affects you. It's also the regulation of the buy now pay load to industry. What do you want to see there from the next government? We've said this numerous times today. Zilch is one of the only providers in the space that is fully regulated as we as we stand here and you know, we've proven time and time again. That it is possible to run a business like this at A50 plus percent gross profit margin being fully regulated, this is possible. So we would be calling on whoever is in the seat in five weeks time, regulate BNPL within the first 100 days. Let's just get this right. We need to protect consumers. We need to remove the confusion and continue driving customers to this phenomenal way of paying overtime and not being rolled into high interest rate credit cards and you've kind of benefited from the cost of living. Crisis, people wanting buy now, pay later products because they've been squeezed financially as the inflation pressures ease off. Does that become an issue for you? Not necessarily. I mean, what what we are seeing in the market is the cost of living is tough for everybody. Obviously that does drive demand. But interestingly, customer behavior, you know, is isn't always how it would seem in theory. People actually tighten up their belts, they stop spending as much. What we are seeing is customers are. Ending the same, if not slightly more, but they're buying less items for that same amount. So naturally you're seeing inflation come through in the numbers and people are struggling to, to start to afford the day today items that they need to buy. So whilst you could argue it's been somewhat of a tailwind, you know, we also have to be very conscious of are we over lending? Are we lending responsibly? Can people actually afford this? So it's a very fine balance. We are very aligned with our customers and This is why we provide both a debit. And credit proposition, what we are saying is don't use more credit, come to zilch and get deals, discounts, deep discounts, and use debit for the day-to-day spending. And where you need a bit more time, use the credit proposition, but never pay any interest. So the combination of these things really helps the customer. OK, it's interesting that the spending patterns are changing, but as you say, demand for zilch. Keeping on. Alright, still CEO and cofounder Phillip Bellamont. Lovely to have you in the studio with me. Kind of an economic barometer. Than what your data?
FinTech is one of the biggest drivers of growth in the UK, and our world-leading UK FinTech community stands at the ready to help this government achieve their ambitions. Read more of my thoughts in the City AM article by Charlie Conchie below.
Yet we are at a critical point, with investment dropping in FinTech globally, and other countries gaining pace. This is why we are so looking forward to working with this new government to ensure we have the necessary policies in place to cement the UK as the best place in the world to start, scale and grow a FinTech business - for the benefit of consumers across the country.
At Innovate Finance we have today released our Plan for Government, alongside our H1 FinTech Investment Landscape, which lays out precise steps on how all of us - industry, regulators, and government - can work together to support this thriving sector of our economy, to drive growth and secure a better future for all.
HM TreasuryRt Hon Rachel ReevesTulip Siddiqhttps://lnkd.in/dcysreV7
Find our Innovate Finance Plan for Government here: https://lnkd.in/deNmiETy
☄️ Britain has elected a new Labour Government with Keir Starmer as Prime Minister. The government is set to drive economic growth through smart reforms and encourage private investment, creating great opportunities for FinTech.
🔍 Key Points
💡 Focus on Economic Growth:
The new government aims to boost growth by cutting regulatory obstacles and encouraging innovation without relying on tax cuts or spending increases. This will create opportunities for the FinTech sector.
🔓 Reform in FinTech Policy:
There will be a strong push for reforms to unlock economic growth while maintaining existing policies. Priorities include open finance, regulatory innovation, and increasing investments in UK capital markets.
🌟 Labour’s Vision for FinTech:
Labour recognises financial services as a key success for Britain and pledges to support innovation and growth in this sector. A new Regulatory Innovation Office will help modernise regulations and speed up approval processes.
💥 The future looks promising for the FinTech industry, which is expected to reach $1.5 trillion in revenue by 2030. With targeted reforms and a supportive regulatory framework, we are on the brink of an exciting period of growth and innovation.
For more info:
I highly recommend subscribing to the Innovate Finance newsletter if you want great content on Fintech and UK regulatory affairs.
BCG Global Fintech Outlook https://lnkd.in/dnUdZtew
P.S for the cauliflower stake enthusiast, here’s a picture from our team dinner at Blacklock#FinTech#PaymentInnovation#RegulatoryReform#Numeral
Read the first in a series of blogs on UK policy developments in financial services regulation leading up to the General Election. I think that the Labour plans announced on Thursday had some really interesting features. On the one hand, a message of continuity through enhancing the competitiveness of the UK financial services sector, leading the sustainable finance revolution and enhancing innovation and fintech. On the other hand, there are definitely some new messages on the direction of travel. I would flag four of these although there are others:
1. The reference to building a more collaborative relationship with the EU. In other words, where it makes sense the sense that there is a post Brexit UK aversion to adopting a similar regime may be set aside.
2. Full speed ahead on the consumer agenda and if anything a hint that it will be broadened through products like longer term fixed rate mortgages.
3. Making the city truly national through encouraging job creation outside London and Edinburgh. How this will be done is another question.
4. Creating the framework for savings into UK venture capital and small caps – this last area has been much talked about and the devil will be in the detail.
A lot more to say but the overall message is of a pretty full financial services regulatory programme designed to meet broader policy goals.
#labourplans#financialregulation
UK Fintech in 2024: Adapting to the New Landscape
With Labour likely winning the next election, the UK's fintech industry is anxious about its future. Labour's report, "Financing Growth," offers little clarity. Compliance experts are concerned by the lack of specifics, while others see potential in Labour's focus on regulatory reform.
Declining investments and flotations in the UK further highlight the need for a clear regulatory path. Labour's ambiguity is the biggest hurdle for UK fintech. Uncertainty discourages investors, entrepreneurs, and consumers, while Ireland strengthens its fintech position.
Waiting for clear political direction might be futile. Fintech companies need to be proactive and shape the market themselves. The onus is now on the industry itself to innovate and push for a clear regulatory framework to ensure the UK remains a fintech leader. In any case, the country still remains a leader in the fintech sector with the greatest opportunities for development and the best security system.
International Fintech Business (IFB) can help you enter the British fintech industry. We sell ready-made companies with EMI, API, SPI, and other financial licenses or we can help to register a company or bank account from scratch. Our experts will help with any questions. Contact us today!
For details: [email protected]
More info: ifbusiness.uk#IFB#Fintech#Banking#Digital#FinancialServices#Europe#UK
Rachel Reeves and the Treasury have pledged to "embrace" the fintech sector, which could contribute an astonishing £330bn to the government’s coffers over the next five years!
According to a policy plan by Innovate Finance, shared with City A.M., the fintech industry is poised to deliver £328bn in tax revenues by 2029. This growth hinges on unlocking institutional investment and streamlining data policies.
“Fintech is one of the most obvious drivers for growth in the UK,” said Janine Hirt, Innovate Finance CEO. She emphasized the need for government support through smart data legislation, reviewing payment reimbursement schemes, and focusing on innovation.
Despite recent funding slowdowns, the UK remains a global leader in fintech, second only to the US. With strategic support and investment, we can maintain our edge and continue to drive innovation, inclusion, and economic growth.
The future of UK fintech looks bright, and with the right support, it will undoubtedly be a powerhouse for our economy. Let’s embrace this opportunity and drive forward!
#Fintech#SearchChainPartners#Innovation#EconomicGrowth#UKLeadership
The Labour Party published their plan for financial services, Financing Growth, on 31 January 2024. The plan calls out that the financial services sector contributed to 12% of the UK’s economic output in 2023. There is a significant focus on payments, highlighting the importance of the sector in the overall economy. Labour's plan continues to take the payments sector on the same trajectory, ensuring in-flight initiatives can continue.
The plan focuses on tackling fraud collaboratively and regulating the Buy Now Pay Later sector both seeking to address consumer loss and make payments in the UK a better and safer experience. There is also recognition of what a great sector the UK has in payments and fintech, and explores how we can compete on the international stage and become one of the UK's best exports.
Read KPMG UK's full blog now: http://spkl.io/60444arW6
Professional Services Client & Partner Engagement Leader; an experienced mix of Operational, Technical and Commercial senior management expertise - with a focus on sustainable Customer Success.
The Labour Party published their plan for financial services, Financing Growth, on 31 January 2024. The plan calls out that the financial services sector contributed to 12% of the UK’s economic output in 2023. There is a significant focus on payments, highlighting the importance of the sector in the overall economy. Labour's plan continues to take the payments sector on the same trajectory, ensuring in-flight initiatives can continue.
The plan focuses on tackling fraud collaboratively and regulating the Buy Now Pay Later sector both seeking to address consumer loss and make payments in the UK a better and safer experience. There is also recognition of what a great sector the UK has in payments and fintech, and explores how we can compete on the international stage and become one of the UK's best exports.
Read KPMG UK's full blog now: http://spkl.io/60404Ikw8
Senior Principal (Director) at Infosys Consulting ||Ex KPMG UK || Ex Deloitte || Ex EY || Ex Shell.|| Motivational Speaker and Mentor.||YouTube Content Creator|| I am a POLYMATH
The Labour Party published their plan for financial services, Financing Growth, on 31 January 2024. The plan calls out that the financial services sector contributed to 12% of the UK’s economic output in 2023. There is a significant focus on payments, highlighting the importance of the sector in the overall economy. Labour's plan continues to take the payments sector on the same trajectory, ensuring in-flight initiatives can continue.
The plan focuses on tackling fraud collaboratively and regulating the Buy Now Pay Later sector both seeking to address consumer loss and make payments in the UK a better and safer experience. There is also recognition of what a great sector the UK has in payments and fintech, and explores how we can compete on the international stage and become one of the UK's best exports.
Read KPMG UK's full blog now: http://spkl.io/60434ayV1
How big is the Financial Industry in the UK? A few numbers.
The Financial and Professional Services (FPS) industry is a cornerstone of the UK economy, driving growth, employment, and international trade. London’s status as a global financial centre further underlines the sector’s importance, and despite economic challenges, the industry remains a vital part of the UK’s economic landscape.
With 2.5 million people employed across the UK – over 1.1 million in financial services (FS) and more than 1.3 million in related professional services. The UK is a world leader in many areas of the financial industry – banking, insurance, asset management – but global competition means the UK must continue to strive....#ukeconomy#growth#financialsector#challenges#internationaltrade#professionalservices#financialindustry#banking#assetmanagement
The Labour Party published their plan for financial services, Financing Growth, on 31 January 2024. The plan calls out that the financial services sector contributed to 12% of the UK’s economic output in 2023. There is a significant focus on payments, highlighting the importance of the sector in the overall economy. Labour's plan continues to take the payments sector on the same trajectory, ensuring in-flight initiatives can continue.
The plan focuses on tackling fraud collaboratively and regulating the Buy Now Pay Later sector both seeking to address consumer loss and make payments in the UK a better and safer experience. There is also recognition of what a great sector the UK has in payments and fintech, and explores how we can compete on the international stage and become one of the UK's best exports.
Read KPMG UK's full blog now: http://spkl.io/60484arxO
Also available on YouTube here: https://www.zilch.com/news/video-bloomberg-zilch-ceo-lobbies-uk-politicians-on-listing-rules-ahead-of-ipo/