Innovate Finance urges government steps to sustain UK fintech growth

# What the report says Innovate Finance published FinTech as a Force for Good to map the fintech sector's economic and social role in the UK and to recommend specific government actions. The report combines headline figures about market reach and jobs with six policy areas it says need attention for the sector to keep growing.

# The sector's footprint

# Six policy priorities Innovate Finance wants addressed Innovate Finance calls for coordinated action across these areas:

• Open Finance: accelerate the move beyond Open Banking to wider, secure financial data sharing so firms can build personalised products, improve decision-making, and boost competition.
• Fraud: strengthen measures to tackle fraud as the market scales and new payment rails and digital products emerge.
• Digital verification: advance digital identity and verification capabilities to reduce duplicated checks and friction while preserving financial crime controls.
• Sterling stablecoin market: support the development of a competitive stablecoin market denominated in Sterling to enable new payment and settlement use cases.
• International expansion support: provide more help for UK fintech firms seeking to scale overseas and capture export opportunities.
• Tax and pension reforms: adjust rules to encourage investment into fintech and to retain talent and capital in the UK.

# Why Open Finance and data matter The report positions Open Finance as foundational for the next wave of fintech innovation. Wider access to secure financial data is described as enabling more personalised products and improved decision-making by firms and consumers. Innovate Finance also links Open Finance to the development of trusted AI applications in financial services, arguing that better access to quality data will support more sophisticated, competitive products.

# The risk: rising global competition

# Practical implications for stakeholders Government and regulators: coordinated policy changes across the six areas would aim to reduce friction for firms scaling and to protect customers as services broaden. Fintech firms: continued growth opportunities hinge on better data access, clearer rules for digital assets, improved verification mechanisms, and tax/pension conditions that favour investment and retention. SMEs and consumers: if the recommendations are implemented, they could see smoother onboarding, more tailored finance products, and new payment options backed by stablecoin rails.

# Next steps cited by the report Innovate Finance calls for government and regulators to work with industry on detailed reforms in each of the six areas. The report frames these actions as practical levers to translate fintech innovation into sustained economic and social benefits across the UK.