Greater focus and investment on research and innovation is needed to maximise the growth potential of the Ƶ's fintech sector, according to bodies promoting the industry in Wales and Scotland.

FinTechScotland andFinTechWales, in a reported entitled Research and Innovation for ƵFinTech, set out a number of key actions to build a longer-term research and innovation ecosystem across the Ƶ, to back a sector that already employs 60,000 and is estimated to be worth £70bn.

Jointly authored by Gavin Powell and Johnny Mayo ofFinTechWales along with Nicola Anderson and Stephen Ingledew ofFinTechScotland, the report calls for:

  • Challenge led innovation programmes identified through collaborative national and regional exercises to develop 'ground-breaking' propositions through a funded research pilot programme
  • Mapping the longer term needs forfintech research and innovation in partnership with established researchers to develop support through a long-term funding portfolio.
  • The development of aFintechInnovation Institute by collaboration of Ƶfintechregions to lead the steering and operation of a long-term funded portfolio.
  • Regionalfintechcontributions that leverage the local strengths and connected networks to help drive economic growth and build greater resilience across the Ƶ.

The proposed actions have been supported by contributions from experts across industry, regulators, research experts and academic organisations across the Ƶ.

Sarah Williams-GardenerFinTechWales, chief executive said: “ This paper recommends a clear plan to secure a more prosperous future forfintechthrough innovation and we need to act now to ensure that we can continue to grow infintechand not fall behind our international competitors.

“We must create an environment where opportunities to innovate – and break through the crowd – can be achieved. The importance to build back better post Covid-19 is even more pressingIf we don’t commit to providing the right conditions now for ourfintechinnovators, we will almost certainly lose out to our international competitors.”

Last summer the complementaryfintechstrategic review was launched by Chancellor Rishi Sunak to examine how the growing sector can thrive in a post EU environment.

It will report shortly with Ron Kalifa, the former chief executive of Worldpay, leading the review. Recommendations expected include the establishment of a £1bn fund to back fast-expanding start-ups in the sector across the Ƶ.

Mr Kalifa said “ We are delighted to seeFinTechScotland andFinTechWales combining forces to propose a Ƶ wide joined up approach tofintechinnovation. We all have a common goal to make Ƶfintechresilient and prosperous on the global stage.”

Deputy Minister for the Economy and Transport at Welsh Government, Lee Waters said: "TheFintechsector is absolutely crucial to the Welsh economy and we have worked hard to create a truly world class industry here in Wales, which will have an even bigger role to play as we recover from the impacts of coronavirus.

“We have long championed and supported innovation through our SMART suite of programmes and we are committed to helping businesses respond to market demand while continuing to attract internationally-renowned companies to Wales.

“I applaud the proactive work undertaken, and initiativeshownbyFinTechWales,FinTechScotland and Innovate Ƶ. It’s now crucial the Ƶ Government provides the support needed for the sector to continue to flourish now and in the future.”