{"id":22918,"date":"2021-03-15T06:15:50","date_gmt":"2021-03-15T06:15:50","guid":{"rendered":"https:\/\/codeandpepper.com\/?p=22918"},"modified":"2022-05-27T11:34:30","modified_gmt":"2022-05-27T11:34:30","slug":"kalifa-review-of-uk-fintech-report","status":"publish","type":"post","link":"https:\/\/codeandpepper.com\/kalifa-review-of-uk-fintech-report\/","title":{"rendered":"Kalifa Review of UK\u2019s FinTech in 2021"},"content":{"rendered":"\n

Financial technology, or FinTech for short, is a hit. It\u2019s a global revolution that transformed the lives of many people. It enabled them to hold onto a job, manage their finances, discover better options for their home budgets. The Kalifa FinTech review for 2021<\/a> shows how much this business has  evolved in the UK \u2013 one of the most vibrant markets in the world. We work with the best \u2013 two of our clients contributed to the report.<\/p>\n\n\n\n\n\n\n\n

\"Kalifa<\/figure><\/div>\n\n\n\n

These clients are Smart Pension<\/a> and ID Co<\/a>. For the first one we have built big nearshore teams with highly specialized software engineers. They were self sufficient and had developers, lead developers, quality assurance specialists and product owners. For the second company we have made a custom solution. We have created custom solutions for two advanced software applications.<\/p>\n\n\n\n

Back to the report. It was made by Ron Kalifa OBE, who conducted an independent review to identify and write about priorities of the UK\u2019s FinTech sector. The goal was to support the growth and adoption of the UK made solutions while maintaining the UK\u2019s global reputation for having top-notch financial applications.<\/p>\n\n\n\n

The landscape<\/h2>\n\n\n\n

The result? Over 100 pages about the sector. At a glance, Kalifa came up with 5 areas that can be improved or enhanced in order to sustain the sector\u2019s growth. For example, Kalifa recommends that FinTech becomes an integral part of the trade policy. This is very smart, considering that financial technology is, in fact, a form of trade or support for international exchange. Especially now, when Brexit is over and Great Britain has to fend for itself.<\/p>\n\n\n\n

There are also proposals to invest in talents, support educational paths, and create an effective stream for people who want to join the FinTech world. The Kalifa report<\/strong> also recommends creation of the \u201cFinTech Growth Fund\u201d, with \u00a31bn to begin with. Its role would be to act as a catalyst for the whole ecosystem. The author also wants to start the \u201cFinTech Credential Portfolio\u201d or FCP. This initiative would be aimed at supporting the country’s international credibility that will be used as a jump start for making even more FinTech applications.<\/p>\n\n\n\n

Another conclusion is that the UK has to help top financial technology clusters to exceed their expectations and help them in daily activities. Companies\u2019 acceleration should be done through official government channels and supporting institutions. The FinTech mobile app development<\/a> certainly isn\u2019t easy \u2013 firms can use all the support they can get. The most interesting apps are here, in our FinTech Trends in 2021 report<\/a>.<\/p>\n\n\n\n

Kalifa\u2019s review of UK FinTech<\/strong> is valuable and informative. It paints the picture of the industry that was hurt by Brexit and uneven messaging. Some European FinTech hubs, like in Paris and Berlin (to name only the biggest ones) cash in on the turbulent economic and political situation that troubles UK\u2019s officials. <\/p>\n\n\n\n

With the immigration issues, the UK is facing a shortage of human capital. That\u2019s why local talents and specialized end-to-end software development<\/a> providers must work together to calm the waters. The Kalifa FinTech review rightfully points out that it\u2019s about agility. The UK has to add flexibility to its business options to thrive and develop even more sophisticated market solutions.<\/p>\n\n\n\n

The Kalifa review on economics and logics of help<\/h2>\n\n\n\n

It\u2019s also about education. The Kalifa FinTech report says that contributors don\u2019t feel that the UK is paying enough attention to new generations.<\/strong> In fact, they claim, the UK has failed to invest in higher education. The document describes a landscape where technical and vocational training took the institutional hit and over 700,000 youngsters find themselves in a cold on a jobless market. Jobless, because companies won\u2019t hire them for non-existent skills.<\/p>\n\n\n\n

Kalifa wants to expand research and development (R&D) tax credits. There\u2019s a need, he says, for the country to accommodate the cost of financial data sets. They are important and even crucial to the development and scaling of the UK\u2019s FinTechs. In the survey, the report\u2019s contributors pointed out that the expansion of EIS, SEIS, and VCT tax reliefs would help regulated FinTechs. In fact, the same survey shows 97% of Founders used state aid schemes.<\/p>\n\n\n\n

That\u2019s not all. The growth of the UK FinTech sector has been and is still fueled by international sources of capital. The KPMG FinTech report for 2020<\/a> shows that over the last five years the majority of investment in the sector came from non-domestic capital. <\/p>\n\n\n\n

There is a scale-up funding gap that can be mitigated by pursuing two roads. On one hand, by working with internal capital providers. On the other hand, by utilizing outside help in application development. This will assure a quicker return on investment (ROI) and put UK\u2019s FinTech in another and even more efficient path of growth.<\/p>\n\n\n\n

Summary<\/h2>\n\n\n\n

While the political and economic situation of Great Britain has been turbulent in recent years and plummeted under the COVID-19 crisis, there is a high chance of recovery. The challenges highlighted by the Kalifa FinTech report are not structural<\/strong>, at least not all of them. The main thing is to get on the fast track with partners, both domestic and external. It\u2019s about the mind and ability to quickly spot opportunities. <\/p>\n\n\n\n

The UK is full of talented visionaries and business owners. They just need a little break to compete with Paris, Berlin, and the rest of the world.<\/p>\n\n\n\n\n\n

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