A world-first initiative, the Fintech Pledge will set globally leading standards for the establishment of efficient and transparent commercial partnerships between banks and fintech firms. The key principles of the pledge rest upon the banks providing clear guidance to technology firms on the onboarding process through a dedicated landing page, and providing clarity on progress through being onboarded. They will provide a named contact, as well as guidance and feedback, and encourage good practice and improvement. Furthermore the pledge commits banks to implementing these principles and practices within six month of signing.
From today, banks will have the opportunity to volunteer as signatories to the pledge, with five major banks - Barclays, HSBC, Lloyds Banking Group, NatWest Group and Santander - already volunteered as early signatories through their involvement as members of the Fintech Delivery Panel.
The Fintech Pledge formalises the continued work of banks to evolve and improve their processes and engagement with the fintech sector, as increasingly tech start-up companies and banks are looking to partner with each other to drive better consumer and client outcomes. Furthermore, commercial partnerships with banks are an important factor in the growth and scaling capabilities of fintechs, making increased collaboration through the pledge key to creating an environment that enables a globally competitive and world-leading fintech ecosystem.
The launch of the Fintech Pledge continues the important work already undertaken to support the UK fintech ecosystem, including in open banking and in pioneering regulatory innovations such as the Financial Conduct Authority’s regulatory sandbox. While the UK’s fintech sector is already a global leader, and is a strategically important sub-sector for the UK economy, the Fintech Pledge will help to ensure that the UK remains the best place to start and scale a fintech company.
The Fintech Delivery Panel is also pleased to welcome new members. Established in 2017 by Tech Nation at the request of HM Treasury, the panel is made up of leaders in UK fintech as well as the 5 largest banks in the UK. The new members include representatives from Monzo, Transferwise, OakNorth and Atom Bank, as the panel moves to chapter 2.0, tackling new objectives alongside existing work, including looking at the challenges and opportunities presented by COVID-19, and the UK’s Exit from the EU.
John Glen, Economic Secretary to the Treasury comments: “The UK is already the best place in the world to start and grow a Fintech, and we’re committed to that remaining the case as our economy bounces back. So I welcome the Fintech Pledge from some of our leading banks and look forward to more firms becoming signatories.”
Eileen Burbidge, Chair of the Fintech Delivery Panel and Partner, Passion Capital comments: "It's brilliant to see the collaboration and efforts of the Fintech Delivery Panel lead to this fantastic commitment, helping fintechs scale their businesses by partnering more effectively with banks. The Fintech Pledge, with the support of HM Treasury and the five largest banks in the UK, will support transparent and efficient collaboration, ensuring that the UK continues to lead the world in fintech innovation and sector growth."
Victoria Roberts, Director of Fintech Delivery Panel at Tech Nation, comments: “Building partnerships with established institutions is a fantastic route for fintechs to drive positive change in finance, be it underpinning new customer solutions or transforming regulatory reporting. The Fintech Pledge provides a welcome clarity, setting out clear commitments of what fintechs can expect and how best to create productive collaborations.”
“We’re excited to embark on this next phase of the Fintech Delivery Panel, welcoming new members as we launch the Fintech Pledge to underpin productive partnerships. Panel 2.0, supported by HM Treasury and powered by Tech Nation, has an important role to play bringing together fintechs, incumbents, investors and policymakers to create an innovative environment for fintech to flourish.”
The principles of the pledge
- Provide clear guidance to technology firms on how the onboarding process works through a dedicated online landing page
- Provide clarity to tech start-up firms on their progress through the onboarding process
- Provide a named contact, guidance and feedback
- Encourage good practice and improvement
- Commit to implementing this process 6 months from signing this pledge and providing bi-annual feedback in the first year
How the pledge functions:
- This is a voluntary pledge
- The signatory banks commit to adhering to the principles defined in the pledge for as long as they are signatories
- Signatories to the pledge will be listed on Tech Nation’s website and will display the pledge’s logo in a prominent place of their choosing on their website
- The signatories list is updated quarterly by Tech Nation in conjunction with the Treasury’s Fintech team
- Pledge signatories will be required to provide a senior sponsor from within the institution and a named person responsible for updating the Fintech Delivery Panel’s onboarding working group on progress
- More details are available from Tech Nation’s Fintech Delivery Panel team
- The pledge has been initiated with the five largest banks in the UK but will be opened up to other banks following launch
About the Fintech Delivery Panel
The Fintech Delivery Panel (FDP) was established in 2017 by Tech Nation at the request of HM Treasury. It is a collection of fintech industry experts from leading fintech startups, investors, and financial services institutions who collaborate to ensure the UK continues to be the intellectual, technological, and financial capital of the world for fintech. The FDP develops collaborative initiatives to positively impact domestic fintech startups and accelerate their time to market.