Fixing the FCA tops fintech founders’ wish list
Fixing issues with the Financial Conduct Authority (FCA) is top on the wish list of fintech founders, a new survey has revealed.
25.9 per cent of UK fintech entrepreneurs said the change they wanted to see from government was ensuring adequate resourcing of the City regulator.
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A number of founders added that, at present, the FCA was “understaffed and…slow”, while another respondent said that “better resource is needed for the FCA to cut waiting times for permissions applications.”
The Fintech Founders’ summer survey of its 300-strong fintech entrepreneur members also revealed calls for a shake-up of the FCA’s wider regulatory approach. Respondents suggested that the FCA should reflect the size of organisations and not treat smaller fintechs similarly to larger players.
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“I’d like to see regulation altered to reflect the size of the organisation – the fact that most financial services regulation was written with the largest firms in mind is extremely punishing for smaller firms and new entrants,” said one respondent.
Despite their concerns about the FCA’s approach, regulation came in second place, cited by 30 per cent of founders, when asked about the biggest barrier to growth.
The most-cited barrier for founders was access to funding, cited by 40 per cent of respondents.
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Fintech founders urged the government to improve access to grants and funding for fintechs, particularly at early stage and growth stage – either directly or through organisations like the British Business Bank.
One suggested change was the creation of “a one stop shop and simple mechanisms for government funding and grants”, to help simplify the landscape for small businesses with limited capacity.
The Fintech Founders was established in 2016 as a network of UK fintech entrepreneurs. The aim is to foster collaboration with government, regulators and other stakeholders, and ensure that the UK retains its status as a global fintech hub.