A major new campaign has been launched to encourage more businesses to leverage fintech to fuel future growth.
The announcement was made by Confederation of British Industry (CBI) president Lord Bilimoria during the 12th annual City Week gathering for the financial services community, which was held in the crypts of the Guildhall, in the City of London on Monday night.
In light of the serial headwinds facing businesses, which include current supply shortages, rising inflation and energy prices, the crossbench peer emphasised that fintech has the power to unlock productivity growth.
In his announcement, Lord Bilimoria urged both business and the government to back the CBI’s ‘Winning with Fintech’ campaign which underlines the sector’s transformational potential for the UK economy.
The campaign advocates that non-financial firms get to grips with fintech as a means of embracing innovation; which will in turn improve efficiency and competitiveness.
‘Winning with Fintech’ explores how firms can work more effectively with fintech to unlock growth and efficiency opportunities – in areas including opening up new markets, improving payment flows and transitioning to net zero.
The CBI’s ‘Seize the Moment‘ economic strategy identified the UK’s fintech sector as a key opportunity, with a potential £32billion in additional revenues on offer by 2030. Statistics from Innovate Finance show in 2021 $11.6billion was invested in UK fintech businesses; representing a 217 per cent increase from 2020.
In addition to the heightened investment, a number of promising UK fintechs continue to rise to the esteemed status of ‘unicorn’.
“Businesses need all the support they can get at present. Slow growth post-pandemic and supply chain struggles have been exacerbated by the terrible conflict in Ukraine. What firms need are fair winds and following seas, with fintech featuring a flotilla of benefits, making global trade smoother, payments easier and sustainability better,” comments Lord Bilimoria.
“The UK’s world-leading fintech sector is ideally placed to go from strength to strength in supporting businesses to manage risks and reduce costs in an uncertain world. The CBI will champion fintech by supporting businesses of all sizes across sectors to seek solutions that will work for them.
“The government is to be applauded for acting on last year’s excellent Kalifa review. Beyond this, the CBI sees a continued role for ministers in driving adoption; from greater coordination of fintech-related initiatives to furnishing the UK’s labour market with the digital skills it needs to succeed.
“Combining the CBI’s convening power with the City’s world-leading financial ecosystem is a surefire way to success; helping firms fuel their future growth.”
Ed Thurman, CBI strategic adviser on fintech, added: “All too often many businesses think innovation is something other firms do. ‘Winning with fintech’ aims to get more firms engaged with financial technologies to save costs, improve efficiency and go for growth.
“In challenging times, partnering to achieve these aims will be crucial for businesses of all sizes, and is a key area of focus for this work.”