UK Government Unveils Strategy to Boost Financial Services Growth and Innovation

Driving Competitiveness in Finance: The new Labour government, led by Chancellor Rachel Reeves, announced plans to reform financial regulations to prioritize growth, competitiveness, and innovation in fintech, sustainable finance, insurance, and capital markets.
Regulatory Overhaul for Growth: Reeves criticized overly risk-averse regulatory frameworks, calling for dynamic policies that encourage innovation and investment. UK regulators like the FCA and PSR have been urged to integrate economic growth into their mandates.
Advancing Payments Technology: The government’s National Payments Vision outlines plans to modernize payments infrastructure, support open banking, and introduce account-to-account (A2A) payment methods. A pilot for a Digital Gilt Instrument leveraging distributed ledger technology (DLT) is also in the works.
Green Finance and Pension Reform: Initiatives include tackling payment fraud, promoting sustainable finance, and establishing large-scale pension funds modeled on systems in Australia and Canada to enhance investment.
Commitment to Open Banking: Industry leaders, like TrueLayer CEO Francesco Simoneschi, applaud the focus on open banking, citing its potential to replace outdated card systems with more cost-efficient, secure, and convenient alternatives.