The UK government has published its new Industrial Strategy: a 10-year plan to drive economic growth, boost investment and cut business costs across eight designated high-growth sectors, including financial services and digital technologies.
It sets out a broad programme of reforms, from slashing industrial electricity costs and accelerating infrastructure approvals, to simplifying regulation and increasing support for R&D and skills.
The strategy also pledges to unlock billions in private capital through an expanded British Business Bank, which will see its investment capacity rise to £25.6billion. It also aims to strengthen the UK’s position in technologies like AI and semiconductors, and roll out Smart Data schemes to improve data sharing and innovation.
The government is committing £36million to develop new Smart Data schemes, backed by a forthcoming Data (Use and Access) Act and a planned £100million National Data Library to support trusted data use across sectors.
While the full financial services plan will be unveiled on 15 July during the Chancellor’s Mansion House speech, fintech voices are already weighing in. Many welcome the direction of travel but there are inevitable calls for speed, clarity and delivery.
“A lot to be encouraged by”
Janine Hirt, CEO of Innovate Finance, said the UK fintech industry body welcomed the strategy and its recognition of financial services, in particular fintech, as a core sector to drive growth across the UK.
“There was a lot to be encouraged by, such as the decision to increase the capacity and capability of the British Business Bank, cutting red tape for firms, and the expansion of the Research Council programme to financial services.
“The strong emphasis placed on driving innovation, which is fundamental to UK fintech remaining competitive, should not be overlooked. The technologies being prioritised by the strategy promise to underpin the next phase of inclusion, productivity gains, and create new cash-management solutions for firms across the UK.
“We are now keen to see the strategy translate to swift, collaborative action. The global race for fintech leadership is intensifying, and without decisive implementation, the UK risks falling behind. We look forward to further detail on how the Government plans to support growth of the fintech sector on 15 July.”
“Financial services recognised as a key sector”
Sarah Williams-Gardener, chair of Fintech Wales, a regional hub for financial technology, said it looks forward to working closely with the Government to help unlock the sector’s full potential.
“The emphasis on AI and the compute power required to support its development is particularly welcome, as we begin to see generative AI driving innovation across financial services – empowering both providers and customers through the next generation of digital banking platforms.”
“Highly encouraging”
Joe Pepper, UK CEO of property transaction platform PEXA, highlighted the opportunity to modernise data.
“For too long, property transactions have been slowed and overcomplicated by the patchwork approach taken across the sector to data collection and sharing, given both the complex process and the number of stakeholders involved. We know there is appetite across our industry to move this forward, and it is highly encouraging to see the Government recognise this too.”
“It takes an average of 22 weeks to complete on a property purchase across the UK and more than 30% of property purchases fall through, putting pressure on homebuyers, lenders, conveyancers and, importantly, the economy. Simply put, those numbers are too big. Standardising and improving data through the introduction of a Smart Data framework is not a magic bullet by any means. But it marks an important step forward to speeding and easing this process for all parties, adding to the positive innovation that is taking place elsewhere in the market.”
“With the development of our PEXA Pay payment system in the UK, and the addition of our Sale and Purchase product later this year, working with the industry, we are committed to helping consumers to make property transactions securely, confidently and with certainty.
“With Government support innovation such as the Smart Data schemes too, there is now a real chance not just to drive improved outcomes for both the property sector and consumers, but to showcase the opportunity that digital reform can drive.”
“Risk of over-correction”
John Phillips, general manager of the UK at accounting automation firm FloQast, supports proposals to rebalance regulation and reduce red tape, but cautioned against weakening core safeguards.
“Rebalancing regulation and cutting red tape for fintech firms are two proposals highlighted to support growth. Simplifying regulation can indeed empower the ‘superstar’ companies of the future to innovate, scale, and compete globally. However, streamlining rules should never come at the expense of accountability or financial integrity. The risk of over-correction – removing necessary safeguards – could undermine trust and expose businesses to greater financial risk.
“Successful organisations will be those that embrace regulatory change while doubling down on strong internal controls and transparent reporting. By proactively investing in compliance and financial best practices, UK firms can seize new opportunities, mitigate risk, and drive responsible, sustainable growth.”
“Ultimately, the UK’s ability to thrive as a financial powerhouse will depend on fostering a regulatory environment that encourages responsible growth without sacrificing the standards that underpin market confidence.”
