financial services in uk

Cryptoassets And Financial Services

Financial services regulation in the UK is broadly carried out by the FCA and the Bank of England (including through the Prudential Regulation Authority (PRA)). The FCA’s regulation aims to protect consumers from harm, protect and enhance the integrity of the UK’s financial services sector, and promote effective competition in the interest of consumers. The Bank of England’s regulation aims to ensure the safety and soundness of firms (through the PRA) and to remove or reduce systemic risks that could pose a threat to financial stability (through the Financial Policy Committee and the Bank’s supervision of Financial Market Infrastructures).

The government has set out an ambition for the UK to be the world’s most innovative economy, and to maintain its position as one of the leading financial centres globally. The UK is well placed to achieve this, as host to a very mature and diverse domestic financial sector. This is a function of, but also relies on, the UK maintaining its international reputation as a safe and transparent place to do business in financial services; ensuring high regulatory standards in financial markets; protecting consumers; and allowing innovators in the financial sector that play by the rules to thrive, so that the benefits of new technologies can be fully realised.

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Financial Lives of Consumers in UK

There are relatively few statistically significant differences by nation or region in terms of use of the internet at least once a day. The exceptions are the West Midlands, where internet use is lower than the UK average, and the East of England and the South East, where internet use is higher than the UK average.

Again, there are marked differences between urban and rural areas: 74% of adults in urban areas use the internet every day, compared with just 50% in rural areas. Looking at the proportions of adults who never use the internet, results are highest in rural areas (28%). Indeed, of the 5.3 million adults in the UK who never use the internet.

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Fintech is an Evolution of Financial Services

Fintech is a radical evolution of the financial services industry, driven by a combination of technology advancements and changing customer expectations. Fintech has grown significantly in recent years. Investments peaked in 2015 , with a total deal value of $60 billion globally. Banking has led the growth of fintech with insurance and asset management beginning to catch up.

Fintechs face significant challenges in getting traction and securing support from incumbents within the financial services industry. The Government could explore opportunities to develop and implement programmes to enable fintechs to access partners.

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