• New Innovate Finance report sets out six priorities to unlock the next wave of growth – including accelerating the timeline for Open Finance, tackling platform-enabled fraud, and building a Sterling stablecoin ecosystem

London, 9th September – To maintain its global FinTech leadership and lead the world in agentic finance, the UK must ensure policy keeps pace with technology, Innovate Finance warns today as it sets out six critical areas that could unlock the next wave of FinTech growth.

Its new report, FinTech as a Force for Good, provides a roadmap for Government to ensure the UK keeps pace with technological change – including agentic AI – and converts its FinTech strength into widespread economic and social value. 

The report calls for action to bring forward Open Finance deployment, put greater responsibility for fraud on the platforms where it originates, and build a competitive Sterling stablecoin ecosystem – alongside measures to expand digital verification, grow UK FinTech exports and help more start-ups scale globally.

Move faster on Open Finance to unlock the AI opportunity

The recommendations from Innovate Finance stress the need for greater urgency in developing the legal and regulatory basis for Open Finance that will ensure the UK’s future leadership in AI, urging the Government to bring forward the timetable to before the end of 2026.

Innovate Finance argues that the current 2027 timeframe risks leaving the UK behind just as AI is transforming how financial services are delivered. Combining AI with Open Finance and Smart Data could make financial services more personalised, accessible, and responsive to people’s individual circumstances.

Around 9 million people – 16% of UK adults – are already using AI tools for personal financial management or financial products. Meanwhile, an estimated £300 billion sits in low-interest accounts that could be better optimised through AI-powered cash sweeping and switching. 

Open finance would build on the UK’s success in open banking and provide a way for people to share their financial data safely and securely with AI tools and agents. Extending secure data sharing to savings, pensions, mortgages and SME finance can quickly unlock huge savings and benefits for British consumers and SMEs; and make the UK a powerhouse for trusted agentic AI and a magnet for AI investment.

AI-enabled financial guidance, savings and investment tools, and SME finance are already developing – and the UK needs the regulatory foundations in place now to capture their full potential.

Put responsibility for fraud on the social media and telecoms platforms 

The UK consumer is increasingly coming under threat from sophisticated fraud originating on the same online social media platforms and networks that underpin everyday digital life.

Innovate Finance is calling on Parliament to change the rules so social media and telecommunications companies are held accountable when criminals use their services to target consumers.

The scale of the problem is clear: 66% of authorised payment frauds in 2025 originated on online platforms, while Lloyds Bank analysis found that 68% of purchase fraud reports between March 2025 and March 2026 originated on Meta platforms. For FinTechs and challenger banks, absorbing these costs undermines competition, limiting their ability to invest, innovate and offer consumers greater choice.

The report sets out changes to the Online Safety Act and payment fraud reimbursement framework to compel platforms and telecoms companies to reduce the fraud originating through their services.

Build a Sterling digital currency advantage

The report makes the case for a national Sterling stablecoin strategy that could cut the cost of payments, strengthen the pound and improve the competitiveness of UK financial markets.

GBP stablecoins backed by UK gilts could create additional demand for Government debt and help reduce borrowing costs. With 99% of stablecoins currently denominated in US dollars, Innovate Finance argues that the UK cannot afford to leave the digital money market to dollar-based alternatives. Building a strong Sterling proposition now would help ensure the next generation of digital finance strengthens rather than weakens the UK's position in global financial markets. 

Government has taken action to introduce a regulatory framework and remove tax barriers to stablecoin use in payments and now has the opportunity to embrace this, including by enabling stablecoin payments for government services and incorporating it into accounting standards.

Janine Hirt, CEO of Innovate Finance, said: “The UK FinTech economy is changing fast, with AI transforming how people and businesses manage their money, while new forms of digital finance are creating significant benefits for consumers and small businesses. FinTech is driving greater growth, financial wellness and financial inclusion across every corner of the UK, and there is opportunity to do even more. However, we risk missing this opportunity if policy doesn’t continue to move ahead at pace.

“The UK has the companies, talent and expertise to lead this new era. But that lead is not guaranteed, and  other global markets are vying for our title. We need to move now – bringing forward Open Finance, putting responsibility for fraud where it belongs and building the foundations for Sterling stablecoins – to ensure the UK stays at the forefront of financial services innovation and global competitiveness, for the benefit of consumers and small businesses across the country. We look forward to continuing to work with our industry members, government, regulators and policy-makers to fully realise this opportunity.”

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Notes to editors

You can access the full FinTech as a Force for Good report here.

FinTech CEO interviews campaign

Innovate Finance has been highlighting the strength and diversity of the UK FinTech ecosystem through its CEO interview campaign, showcasing leaders from across the sector and the contribution their businesses are making to the UK economy. The campaign features CEOs from organisations including Allica Bank, ClearBank, ComplyAdvantage, Funding Circle, GoHenry, iwoca, Simply Asset Finance and Thought Machine. The interviews provide further insight into the businesses, founders and leaders behind the UK FinTech sector and the role they are playing in driving innovation, growth and productivity across the economy.

Media contact

Seven Hills BPI – innovatefinance@wearesevenhills.com 

About Innovate Finance 

Innovate Finance is the independent industry body that represents and advances the global FinTech community in the UK. Its mission is to accelerate the UK’s leading role in the financial services sector by directly supporting the next generation of technology-led innovators.

Innovate Finance’s membership ranges from seed stage startups and global financial institutions to investors, professional services firms, and global FinTech hubs. All benefit from Innovate Finance’s unique position as the single point of access to promote enabling policy and regulation, talent and skills, business opportunity and growth, and investment capital.

By bringing together and connecting the most forward-thinking participants in financial services, Innovate Finance is helping create a global financial services sector that is more transparent, more sustainable and more inclusive.

More information at www.innovatefinance.com