Back
13/05/2021
Sneakypeer Newsletter Week 19
Welcome back to the Sneakypeer newsletter! Below you will find industry news from last week.
UK government will be offering support to the fintech industry
On April 19, the UK government announced that it would be taking action to support the fintech industry after the devastating effects Covid-19 placed on the economy. UK’s chancellor, Rishi Sunak, stated that a brand new fintech “scale-box” would be launched shortly, created by the Financial Conduct Authority (FCA).
The “scale-box” plan will mainly aid young fintech companies in stimulating their growth, aiming to close the gap between small-scale start-ups and successful companies. The “scale-box” strategy has already been a highly efficient approach in the UK since 2016, assisting various small companies in testing out their business ideas and models in a digital, risk-free environment.
FCA begins taking measures against “illegal” lenders
The Financial Conduct Authority (FCA) is currently doing extensive research and collecting vast amounts of data to protect investors from investing in potentially fraudulent lenders. According to Charles Randell, the chair of the FCA, this is a highly challenging task, as these doubtful lending firms and their products are not under FCA regulation.
To effectively tackle the issue of illegal lending, the FCA has modernized its systems considerably, improving its capability of collecting, analyzing, and storing data. Charles Randell highlighted that the City regulator would be taking massive steps towards a more consumer-safe market by consistently tracking progress and preparing to take any required action. The FCA’s primary goal is to eventually reach a transparent and healthy consumer market, where individuals can receive excellent advice and counseling when getting credit.
