The UKs Government and Regulatory Policy Responses to Fintech

DOI: 10.20542/0131-2227-2021-65-2-45-52
I. Podkolzina (, 
Primakov National Research Institute of World Economy and International Relations, Russian Academy of Sciences (IMEMO), 23, Profsoyuznaya Str., Moscow, 117997, Russian Federation

Abstract. The financial landscape is being transformed by technological innovations. This trend can be observed clearly in the UK where fintech is developing within the context of the ongoing digitalization of the economy. This paper examines the role of the British government and regulatory authorities in sparking innovation to improve the way financial services are provided. At the conceptual level, fintech-specific policy presumes the existence of complex trade-offs between competition, market integrity, and financial stability. The special consideration is given to Open Banking initiative as a key driver of competition in financial services sector. By removing barriers to entry and grow for fintech firms the policy enablers try to solve the longstanding problems of financial exclusion. Particular attention is paid to key approaches to fintech regulation. The Financial Conduct Authority undertakes the constant review of regulatory perimeter as a means of mitigating risks to market integrity and ensuring consumer protection. The Bank of England is rethinking the notion of financial stability and reviewing the approaches to managing systemic risks. The paper regards the initiatives implemented by regulatory authorities to support innovator businesses as a way to ensure the world leading position of the UK’s financial sector. It is argued that the supportive government policy and progressive regulation are the overriding factors of fintech development in the UK. 

Keywords: UK, fintech, regulation, financial inclusion, open banking, regulatory sandbox, cryptoassets, token, cryptocurrency, Bank of England


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For citation:
Podkolzina I. The UKs Government and Regulatory Policy Responses to Fintech. World Eonomy and International Relations, 2021, vol. 65, no. 2, pp. 45-52.

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