British FinTechs Tell Government That Regulations Are Stifling Growth

A group of U.K. FinTechs has reportedly met with the country’s government with concerns about growth limits.

At that meeting, Bloomberg News reported Saturday (Oct. 12) citing sources, representatives from companies including Revolut, Clearbank and Zilch warned City Minister Tulip Siddiq that Great Britain could fall behind in the FinTech space if the government neglects key industry concerns.

Among these concerns are the obstacles companies say they face in going public, the length of time it takes for regulators to reach decisions, rules impeding growth and competition, and a lack of access to capital.

One source told Bloomberg that Siddiq said she would take the companies’ concerns to the Treasury, and agreed to meet with the FinTechs again in the months ahead.

“We want to embrace FinTech,” a Treasury spokesperson said in a statement. “That includes unlocking billions of pounds of investment in the U.K. economy through our pension review so that more innovative companies can access the capital they need to grow.”

Bloomberg said there’s a fear that FinTechs could choose to go public outside the U.K. This comes as the sector increases its footprint within the British economy, projected to add £328 billion to the domestic economy within the next five years.

For example, Revolut recently became the most valuable FinTech in Europe after it was valued at $45 billion.

Earlier this year, Revolut UK CEO Francesca Carlesi warned that London risks losing out to Paris and New York in the race to attract startups.

Though London led the world in digital bank launches in the wake of the financial crisis, “something has shifted in the last two or three years,” Carlesi told Bloomberg in March, while still suggesting the British capital was still in the running to host Revolut’s eventual initial public offering (IPO).

“The U.K. is our home and is also one where a lot of our investors come from,” Carlesi said. “We know that companies are always better off to list where their biggest market is.”

Revolut Chair Martin Gilbert said in July that the firm was still at least a year away from going public and would “keep an open mind” on where that listing would happen.

Reports from a few weeks later indicated the British treasury wants Revolut to list at home, and also indicated that Siddiq would meet with the company in the fall.