Janine Hirt Opening Speech IFGS, 17 April 2023

Good morning everyone, and welcome to IFGS 2023, the 9th annual edition of the Innovate Finance Global Summit, and the kick off of UK FinTech Week 2023!

It is fantastic to be here with all of you today.  A huge thank you to all of our incredible Innovate Finance members, partners and sponsors of IFGS, including our Gold Sponsors Barclays Rise, Invest Hong Kong and The Department for Business and Trade as well as our Lead Media Partner CNBC.

The theme of this year’s Summit is Impact.  Over the next two days we will reflect on the impact that FinTech has had on society, on the economy, and on our daily lives, and we will explore the huge opportunity that lies before us.  We will hear from the inspiring innovators transforming financial services for the better, we will dive into use cases and case studies of successful disruption and partnership, and we will get a chance to see some of the newest technology in practice.

On that note, what a year it has been. Since we last convened here in the Guildhall 12 months ago, we have seen economic, political and market turbulence.       

Yet despite all of this, FinTech continues to power forward, driving that more inclusive, that more effective, and that more democratic financial services sector that works better for everyone.  And the UK stands at the forefront.  In 2022, despite difficult economic conditions, more than 12.5bn USD was invested into the UK FinTech Ecosystem, second only in the world to the United States, and ahead of the next 13 European countries combined.  The UK boasts 10% of the global FinTech market share.  FinTech challengers now account for more than 55% of the SME lending market, and today 8 out of every 10 adults in the UK are using at least one FinTech tool on a regular basis.  FinTech is already having a huge impact on lives.

And looking out at all of you here this morning, the inspiring innovators and entrepreneurs that, day after day after day, are driving real change, I am incredibly excited by the next chapter of FS that is unfolding right now.  

To make this our best chapter yet, we as industry must work together with government and regulators to address and push ahead on some of the key priority areas for our sector.

And I want to reflect on this notion of working together for a moment in light of the events over the past few weeks with regards to Silicon Valley Bank here in the UK.  The incredible speed at which a solution was reached, with the swift sale of SVB UK to HSBC before markets opened on Monday morning, was a testament of our Government’s commitment to support this vibrant and thriving sector of our economy. And it was also a prime example of the positive outcomes that can happen when government and regulators and industry come together and work together. It is that appetite for collaboration and working together that will continue to set the UK apart from our peers on the international stage and cement the UK as the very best place in the world to start, build, and scale a FinTech business.

And it is that collaborative approach which we need to continue to the priority areas facing our sector.

Let’s talk briefly about some of those priority areas.

On regulation: we must continue to have forward-thinking regulation that both protects the consumer and allows innovation to thrive.  Here in the UK, we have seen good progress on regulatory frameworks that will further enable innovation.  We now need proportionate regulation of new products in ways that can deliver better consumer outcomes.  In some areas we need a joined up approach beyond financial services.  And we need innovation - fintech and regtech - to be more integrated into all the supervisory and policy teams in our regulators. Which is why we are delighted at Innovate Finance to be building the new RegTech Council in collaboration with our partners at the City of London.

On diversity and inclusion: We must drive greater diversity within the financial innovation space if we are to continue to succeed as a sector.  Of that 12.5bn USD of investment into UK FinTech I mentioned earlier, less than 5% went to female founders or female-led firms.  That is appalling, and it means investors are missing a huge pool of talent.  On this front, we are so pleased to release the second piece of research with our partner EY on ‘Changing the Face of FinTech’, promoting the cause of gender equality in the UK FinTech industry, today.  And it’s not just gender diversity that we must improve on - it is ethnic diversity, racial diversity, socioeconomic diversity, neurodiversity, and LGBTQIA+ diversity. We are particularly excited to announce that in the coming weeks Innovate Finance will open up applications for our very first FinTech Pride Powerlist, which will recognise leaders from the LGBTQIA+ community. 

On the cost of living crisis:  FinTechs are already providing so many solutions to support consumers.  Today we will shine a light on some of these fantastic solutions, and we will look at how industry government and regulators can work together to further untap new technology to help those suffering the most in this difficult economic period. As part of this, today Innovate Finance with BBC StoryWorks Commercial Productions is proud to launch the second original series Wired Differently: Innovation in Finance.  This series meets the innovators who are “Wired Differently” and are shaping the world of finance to help people from all walks of life become financially better off. 

On international and global connectivity: We know that FinTech transcends national borders. The language of technology is global, and increasingly more and more FinTechs are becoming international household names.  Today and tomorrow you will hear from some of the key market players transforming financial services at a global scale.  And later on this morning you will hear some important announcements about how we are working with our partners DBT to assess the appetite and footprint of UK FinTechs scaling abroad. 

On investment:  it is a priority for this sector that we drive greater growth capital to help FinTechs scale.  A key piece of this puzzle is unlocking DC pension fund investment into the UK’s most innovative firms, and we have been honored to support the Lord Mayor in his work around this. 

And finally - a note on the importance of leadership in the overall climate we find ourselves in today.  We are building the next generation of Financial Services right now - you, in this room, are building this next chapter - it is our responsibility, and our opportunity, to shape our future sector into one that we are continually proud to be a part of, into one that leads other industries in terms of greater diversity and inclusion, and into one that has, above all else, people at its core - our customers yes, but also our own teams and colleagues. Prioritizing a positive culture and proper governance as we scale and grow must be a non-negotiable for the continued success of our industry. You will hear more about this theme over the next two days, and Innovate Finance is looking forward to working with our partners in the coming months to support the ecosystem across this piece.        

So, ladies and gentlemen, I hope you enjoy the next two jam-packed days.  A huge thank you to our incredible Innovate Finance team who have worked tirelessly day and night on this conference, our long-standing partners at Seven Hills, my great IF board and especially our outstanding Chair Louise Smith - and, as always, to our absolutely amazing members that inspire me and the entire IF team every day, and who I am so proud to serve and represent. 

My hope is that you leave this summit with a sense of optimism. I, for one, think the energy that continually emanates from our incredible community of entrepreneurs, so many of you here in this room today, is infectious.

So yes - while there is lots more to do, and lots more progress to be made, today, and tomorrow, let’s take a moment to celebrate the achievements you have made; to celebrate the impact you have had and will continue to have; and to celebrate you, the awesome innovators and technologists who prove, time and again, that with enough passion, drive and commitment, anything is possible - and that is what makes our next chapter as an industry so exciting.

Enjoy IFGS 2023 and have a wonderful UK FinTech Week ahead.