Innovate Finance report calls for government action to unlock UK fintech growth

Innovate Finance has published a new report outlining the role fintech can play in supporting economic growth across the UK and calling for government action to maintain the country’s position as a global leader in financial innovation.

The new report, FinTech as a Force for Good, examines the economic and social impact of the UK fintech sector and identifies six policy areas where collaboration between industry, government and regulators could unlock further growth.

According to Innovate Finance, fintech challenger banks and non-bank lenders now provide 68% of small business lending in the UK, while around 3,500 active fintech firms operate nationwide.

The sector also supports more than 20,000 jobs in the North of England alone, while the UK has attracted more fintech investment over the past decade than any country outside the US.

Open Banking is highlighted as another area where financial technology is already having a significant impact. Around 16 million individuals and SMEs now use Open Banking tools and services, giving consumers and businesses new ways to manage their finances and make informed financial decisions.

Innovate Finance argues that the sector has become an important contributor to UK financial services and international competitiveness, with UK fintech firms generating export opportunities, developing applications for trusted AI and accounting for more than half of the country’s unicorn businesses.

However, the report warns that increasing competition from international fintech markets means continued UK leadership cannot be taken for granted.

It calls for coordinated action from government and regulators across six key policy areas, including tackling fraud, supporting the development of a competitive Sterling stablecoin market and accelerating Open Finance.

In particular, Innovate Finance positions Open Finance as an important foundation for the development of trusted AI in financial services, with wider access to secure financial data creating opportunities for more personalised products, improved decision-making and greater competition.

The report also calls for progress on digital verification, greater support for UK fintech firms expanding internationally, and reforms to tax and pension rules designed to encourage investment and retain talent and capital in the UK.

With the sector continuing to evolve beyond Open Banking into Open Finance, digital assets, AI and new forms of digital identity, the report argues that policy and regulation will play a central role in determining the UK’s ability to turn financial innovation into sustainable economic growth.

Read the full FinTech as a Force for Good report

Innovate Finance is an Event Supporter of Open Banking Expo UK & Europe 2026, which takes place on 13-14 October at the Business Design Centre in London. Click here to find out more.