Regulatory Innovation Office to help streamline regulation, helping UK’s world-leading fintech sector
Regulatory Innovation Office to partner with Digital Regulation Cooperation Forum to cut red tape, and support fintech innovation, fuelling government plan for Plan for Change.
Regulatory Innovation Office to cut red tape supporting fintech innovation
- Technology Secretary Peter Kyle announces plans for the Regulatory Innovation Office to work with the Digital Regulation Cooperation Forum to cut red tape, and support fintech innovation, fuelling our Plan for Change
- RIO push includes backing for new tech to help innovators use AI to better navigate complex digital regulations, from fintech to consumer services
- UK’s world-leading fintech sector supported through a new one-stop shop to access all the guidance they need in one place
Fintech and other digital firms will be better supported to navigate complex regulation through new tools backed by the Regulatory Innovation Office, the Technology Secretary announced today (Tuesday 1 July).
Speaking at the AI and Digital Innovation Day at CityWeek, the Secretary of State hailed the UK’s world-leading financial services sector – last year the UK fintech sector specifically attracted $3.6 billion of investment. He set out plans to make it easier for fintech firms to bring cutting-edge products to market – from improved fraud detection to better tools for managing money – a key part of our Plan for Change to unlock innovation-led growth across the country.
Innovators across the landscape – including those in fintech, from start-ups to scale-ups – often face the challenge of understanding the labyrinth of regulations in their sector. This can be especially tough for smaller companies, who often don’t have teams of compliance experts, and will help them scale faster – supporting the SMEs that are the backbone of the UK economy.
The government’s Regulatory Innovation Office (RIO) is partnering with the Digital Regulation Cooperation Forum (DRCF) to support the development of new smarter tools to make navigating the system faster, clearer and more accessible. This will include evaluating a unified digital library providing a ‘one stop’ access to digital policy and regulations for innovators, helping to free up businesses to focus on growth and innovation.
Science and Technology Secretary, Peter Kyle, said:
The UK is a genuine world leader in both financial services and technology, and in the intersection between the two – fintech – but for far too many companies, the complex regulatory environment can be challenging to navigate.
Our Regulatory Innovation Office will work to remove those hurdles, to help innovators unlock new products that could drive economic growth – delivering on our Plan for Change.
Fintech firms are on the front line of solving big challenges – from fighting financial fraud and improving access to banking, to helping people save, borrow and invest more easily. The use of technologies like AI presents enormous opportunities for the sector, as shown at the Financial Conduct Authority’s AI Sprint earlier this year, which looked at how new technologies are set to overhaul the delivery of financial advice, compliance for firms, customer service and more.
But fragmented rules and regulatory complexity slow down innovation, delay safer financial products reaching the public, and deter investment. Supporting innovators to bring trusted products to market faster will help tackle real-world challenges more quickly – and give consumers access to safer, smarter services, which is at the core of The Chancellor’s Regulation Action Plan.
This cooperation with DRCF builds on the broader work of the Regulatory Innovation Office, which already supports 4 priority technologies: engineering biology, space, AI and digital in healthcare, and drones and autonomous technologies. From using quantum techniques to tackle online fraud, to improving emergency response with drone technology, the government is helping unlock the potential of cutting-edge science for real-world benefit.
In his speech, the Science Secretary also marked 6 months since the launch of the AI Opportunities Action Plan – highlighting how it has already delivered new cross-government partnerships, helped fund responsible AI trials, and supported regulators to better engage with innovators. He set out how AI will continue to transform key UK industries – from finance and transport to healthcare and defence.
Kate Jones, CEO, Digital Regulation Cooperation Forum, said:
The Digital Regulation Cooperation Forum is committed to breaking down barriers for innovators by making digital regulation simpler to find, understand and navigate. Our member regulators – Ofcom, the Competition and Markets Authority, the Information Commissioner’s Office, and the Financial Conduct Authority – are working together in support of their common vision: that regulation should enable responsible innovation.
This new user-friendly tool will help businesses and investors to find and understand digital regulation more easily and quickly. We’re pleased to be working with the Regulatory Innovation Office on this, supporting the government’s AI Opportunities Action Plan.
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