UK FinTech is an undeniable national success story. From Edinburgh to Cardiff, Manchester to Norwich, innovative and forward-thinking FinTech firms are creating highly-skilled jobs, attracting international investment, supporting consumers and small businesses, and invigorating local economies right across the country. Whether it is supporting first-time buyers and housebuilding, helping hard working people grow their savings and make their money work better for them, or putting financial education at people’s fingertips, FinTech is truly changing the sector for the better by putting the customer back at the heart of the industry.

Our new Innovate Finance report, FinTech as a Force for Good, details the enormous positive impact FinTech has had on the UK economy and society over the past 15 years. This impact has been a direct result of industry, government and regulators successfully working together to deliver markedly better outcomes for consumers and maintain the UK’s global leadership in financial innovation.

But we now stand at a precipice. New technologies like digital assets and agentic AI will transform our sector, and our lives, beyond recognition. It is imperative that the UK stays ahead, and that policy and regulatory change move at pace to ensure we drive further positive growth. FinTech stands as one of the most important allies in helping the Prime Minister achieve his ambition to spread power, wealth and opportunity to every postcode. But the time for action must be now.

Our FinTech as a Force for Good report, which we have shared with Ministers across Government, highlights six critical areas where we must see urgent policy progress if we are to fully unlock the opportunity this technology affords for consumers across the country. I have touched on three of our most important recommendations below:

Move Faster on Open Finance to Fully Realise the Potential of AI

The Government has rightly placed artificial intelligence at the heart of its economic strategy, but to capture the full potential of AI-enabled financial services, we must bring forward the legal and regulatory basis for Open Finance before the end of 2026. The current 2027 timeframe risks leaving the UK behind just as AI is transforming how financial services are delivered.

Building on our success in Open Banking, combining AI with Open Finance and smart data will allow consumers and small businesses to share their financial data safely and securely with AI tools. This secure data sharing can unlock a new generation of personalised services, helping to optimise an estimated £300 billion that currently sits in low-interest accounts through AI-powered cash sweeping and switching. With these innovative tools already developing, the UK urgently needs to ensure its regulatory approach will enable UK consumers and businesses to capture their full potential.

Tackle Fraud

Innovation must always go hand-in-hand with consumer protection. Authorised push payment fraud continues to affect British families, rising 19% to £576.4 million in 2025.

Yet, despite payment firms being required to reimburse victims of fraud, social media platforms such as Meta and telcos do not face the same level of scrutiny and continue to profit from fraudulent advertising. Lloyds Bank analysis for example found that 68% of purchase fraud reports between March 2025 and March 2026 originated on Meta platforms.

Payments firms and banks are already required to reimburse victims of payments fraud. These safeguards have led to increased actions to tighten controls and work to prevent the fraud from happening. This must also be enforced across social media and telecoms companies. Forcing these companies to take responsibility for the fraud originating on their platforms, reimbursing victims, and introducing mandatory reporting will be key to helping stop criminals at source before hard-working families are targeted.

Build a Sterling Digital Currency Advantage

Simultaneously, the UK must build a competitive Sterling digital currency ecosystem. Digital assets represent the future plumbing of global finance, yet 99% of stablecoins currently in circulation are denominated in US dollars, a reliance the UK cannot afford.

By adopting a national Sterling stablecoin strategy for GBP stablecoins backed by UK gilts, we can cut cross-border payment costs for businesses, strengthen the British Pound, create additional demand for government debt to reduce borrowing costs, and ensure the next generation of digital finance strengthens our position in global financial markets.

The UK built the world’s leading FinTech ecosystem by being willing to embrace new technology early, pair entrepreneurial ambition with forward-looking regulation, and put consumers first.

We now stand at a defining juncture where decisive action, clarity and ambition is needed. If the Government works in lockstep with industry and regulators to deliver these priority steps, we can shape the future of global finance, champion our extraordinary entrepreneurs, and power sustainable growth across every corner of the UK.

To explore our full roadmap across AI, fraud, stablecoins, digital verification, international exports, and scaling, you can access Innovate Finance’s complete FinTech as a Force for Good report here.

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