Bim Ofolami, the Economic Secretary to the Treasury, has established an open finance task force during aspeech at the IFGS 2024 conference.
According to Finextra Research, this move, eagerly anticipated following the publication of the Centre for Finance, Innovation, and Technology’s (CFIT) Blueprint report in February, aims to set a definitive path for the integration and implementation of open finance in the UK, particularly focusing on enhancing SME lending.
Ofolami’s announcement sheds light on the government’s forward-thinking approach towards creating a robust digital finance ecosystem. He underscored the task force’s mission to “craft a clear set of recommendation, pinpointing the data sets of commercial incentives necessary to drive forward CFIT’s SME lending use case.” This initiative is seen as a pivotal step towards dismantling barriers to entry for SMEs and fostering an environment conducive to innovation and growth within the financial sector.
Furthermore, the Economic Secretary highlighted the necessity of a “payments landscape where open banking can thrive”, indicating that the forthcoming National Payments Vision, slated for publication before the summer recess, would play a crucial role in realising this goal. Emphasising the collaborative nature of innovation, Ofolami remarked, “Government can only do so much. I am not from the school of thought that thinks great innovation comes from people like me, it comes from you.” This statement not only champions the role of the private sector in driving technological advancements but also underscores the government’s commitment to facilitating an ecosystem that nurtures innovation.
Additionally, the announcement of imminent cryptocurrency legislation marks a watershed moment for the FinTech industry, promising to bring a range of cryptocurrency activities, including the operation of exchanges and the management of customer assets, within the regulatory perimeter. This development is keenly awaited by stakeholders, as it promises to establish a clear legal framework that ensures security, transparency, and trust within the burgeoning cryptocurrency market.
CFIT’s leadership in chairing the task force further reassures industry participants of the initiative’s alignment with the broader objectives of the UK’s FinTech strategy. As the task force embarks on its mission, the FinTech community eagerly anticipates the transformative potential of these developments on the UK’s financial services landscape.
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