Budget 2020: Chancellor unveils plans for FinTech review

We unpick the key financial services and FinTech announcements from the Chancellor’s first 2020 Budget.

Chancellor Rishi Sunak’s 2020 Budget was delivered on 11 March 2020 during a time of unprecedented financial stress and uncertainty. While the recent Coronavirus pandemic was certainly in the spotlight, Sunak did not neglect to unveil a raft of measures that will both support and transform the financial services landscape.

Most notably, Sunak set out plans for an industry-wide review of the FinTech sector – to be led by Chairman of Network International, Ron Kalifa OBE. The review, it is hoped, will “support growth and competitiveness” within the industry and move to ensure that the UK remains a global leader in the field.

The government also took the opportunity to announce that it will extend its funding for the FinTech delivery panel, and will tour the UK over the coming year to showcase the UK’s fast-developing number of world-class FinTech firms

For those working in FinTech, the 2020 Budget is a welcome nod towards the great strides that have been made in terms of innovation and transformation in an industry that has made significant contributions to the UK’s economy.

The FinTech review is just one of a handful of measures that will affect the FS landscape. Sunak also set out that, subject to a consultation in Spring 2020, firms that are subject to the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017 (SI 2017/692) will be obliged to pay a levy towards funding the government’s efforts to tackle anti-money laundering.

The Chancellor pointed out within the 2020 Budget that government is eagerly anticipating the publication of the Bank of England’s discussion paper on the potential for a UK central bank digital currency and acknowledged that the UK currently stands as a global leader in digital currencies and the opportunities they present.

Finally, as you may recall, in July 2019 HM Treasury published a call for evidence on the Financial Services Future Regulatory Framework Review. The Treasury has now collated the evidence it received and published a response to the call for evidence alongside the Budget 2020. Stay tuned for CUBE’s breakdown of the Treasury’s response.