- Speaker: Jessica Rusu, Chief Data, Information and Intelligence Officer Event: FCA 10th anniversary event Delivered: 17 October 2024
Highlights
- Launching the new AI Lab, which aims to enhance innovation services with a specific focus on artificial intelligence.
- Celebrating a decade since the introduction of the world’s first regulatory sandbox, underlining the UK’s leading position in FinTech and innovation in financial services.
- Supporting nearly 1,000 firms since our inception, influencing over 95 global regulators to adopt similar sandbox models.
Reflecting on the past decade, we see a remarkable evolution in the UK FinTech sector. Ten years ago, the industry was a nascent force valued at approximately £5-6 billion, with under 1,000 active firms. By August 2014, the UK government declared its ambition to become the global capital of FinTech.
The landscape has shifted significantly since then. Fast forward to 2023, and the UK FinTech market has soared to an estimated £30 billion, with the number of firms tripling to over 3,000. The UK ranks second globally in FinTech investment, securing over $5 billion while outpacing 28 European nations combined in attracting capital—a milestone that merits celebration.
Project Innovate has seen substantial growth since 2014. Initially staffed by only two people, it now boasts a dedicated division, the Data, Technology and Innovation (DTI) division, with a larger team committed to driving innovation and regulatory solutions in financial services.
Our Innovation services have expanded to include a world-first Regulatory Sandbox, widely adopted by regulators around the globe. Through our Innovation Pathways, we have helped firms navigate regulatory complexities, enhancing our support for sustainable innovation in the industry.
Over the last decade, we have facilitated collaboration among communities to tackle key challenges in financial services through initiatives like TechSprints and PolicySprints, covering topics from fraud prevention to Open Finance.
Recognizing that innovation transcends borders, we established the Global Financial Innovation Network (GFIN) in 2019, fostering international cooperation among over 90 regulators to address global market dynamics impacting the UK.
A pivotal aspect of our success has been the strong partnership developed with the industry. Our role as regulators extends beyond enforcement; we strive to create an environment where sustainable growth thrives, ensuring beneficial innovation while safeguarding consumer interests.
Our commitment to innovation is deeply ingrained in our strategy. By fostering competitive advancements in the financial sector, we have helped firms deliver new solutions to longstanding issues, contributing to improved financial inclusion and customer service.
As part of our 10th anniversary celebration, we are releasing a comprehensive Lookback Report highlighting the extensive services and support extended to firms across the financial landscape.
Looking ahead, we are focusing on harnessing the transformative potential of artificial intelligence (AI). While challenges are imminent, AI presents opportunities to enhance consumer financial inclusion and improve market practices. We are dedicated to ensuring that AI development aligns with consumer and market interests, mitigating risks while embracing the benefits.
In pursuit of safe AI adoption in financial services, we are collaborating with a range of stakeholders, including industry leaders and regulatory peers. Our Digital Regulation Cooperation Forum (DRCF) partnership has led to the creation of the AI & Digital Hub, supporting innovators seeking guidance on AI implementation.
We are expanding our research initiatives around AI utilization through our upcoming AI Survey, which will deepen our understanding of generative AI applications in financial services.
With the AI Lab launch, we aim to assist firms in overcoming AI-related challenges. The Lab comprises four main components: AI Spotlight, AI Sprint, AI Input Zone, and a Supercharged Sandbox for enhanced testing capabilities.
- **AI Spotlight**: A platform for sharing examples of AI solutions that promote industry growth, culminating in a Showcase Day on 28 January 2025.
- **AI Sprint**: An inaugural event slated for January 2025, designed to facilitate dialogue on safe AI integration in financial services.
- **AI Input Zone**: An online feedback platform launching next month for stakeholders to contribute their perspectives on AI’s future in the sector.
- **Supercharged Sandbox**: Enhanced TechSprints and Digital Sandbox capabilities will support AI testing, powered by robust infrastructure to facilitate innovation.
As we navigate the future of financial services, including technologies like fund tokenization, green finance, and quantum innovations, we are committed to supporting the industry’s evolution. Our dedicated market analysis and Emerging Tech team will continue to stay ahead of trends impacting both consumers and markets.
To our partners in FinTech, institutions, and academia, your collaboration has been essential in developing a competitive, innovative financial ecosystem in the UK. We look forward to working together in the upcoming decade to embrace new challenges and opportunities.
As we advance, our excitement grows as we shape the future of innovation in financial services.
