The UK has unveiled a major initiative aimed at accelerating the growth of the UK’s most innovative financial services firms, with a focus on boosting regional economies and simplifying regulation for scaling businesses.
Speaking at a high-profile conference of investors, financial services leaders, and local officials in Leeds, Chancellor of the Exchequer, Rachel Reeves, announced the launch of a new Scale-up Unit, designed to provide tailored support for fast-growing banks, insurers, and fintech companies.
The initiative underscores the government’s push to “supercharge” economic growth by making it easier for financial firms to expand, attract investment, and create high-skilled jobs across the country.
Cut through regulatory complexity
The newly created Scale-up Unit will serve as a joint initiative between the Financial Conduct Authority (FCA) and the Prudential Regulation Authority (PRA). It will act as a dedicated point of contact for firms seeking guidance on navigating complex regulatory requirements — an area often cited by fintech leaders as a major barrier to growth.
Initially, the service will be open to fast-growing deposit-takers and insurers, before expanding to include fintechs and other financial services firms in 2026. The unit’s support will include bespoke regulatory advice, faster responses to queries, and dedicated access to experts from both the FCA and PRA.
By streamlining the regulatory process, the government hopes to help firms spend less time on compliance administration and more on developing new products, hiring staff, and driving innovation within the UK’s financial ecosystem.
The announcement is part of Reeves’ broader “modern Industrial Strategy,” which prioritises growth through innovation, productivity, and regional investment. It also aligns with the government’s “Plan for Change,” which pledges to go further and faster in expanding the economy and supporting high-quality employment.
UK’s position as a global financial hub
The Scale-up Unit forms part of a broader effort by the government to cement the UK’s status as a global hub for financial services and technology. This includes recent measures such as the Mansion House Reforms and the Leeds Reforms, both designed to unlock private investment and encourage regional financial growth.
The government argues that these reforms are already delivering results, with more than £110 billion in new investment committed by global financial services companies in recent weeks. Among the most high-profile announcements is fintech giant Revolut’s £3 billion investment to open its new headquarters in Canary Wharf, creating 1,000 jobs over the next five years.
A key focus of the initiative is addressing the £2 billion fintech scale-up funding gap identified in Sir Ron Kalifa’s 2021 Review of the UK fintech sector. By offering clarity and speed in regulatory processes, the new unit aims to encourage greater investment into scaling firms that might otherwise face obstacles in accessing capital.
To complement this, the government is supporting new efforts from the City of London Corporation and the British Business Bank to expand access to finance and commercial opportunities for high-potential fintech firms.
The UK currently hosts over 3,000 fintech companies, employing more than 75,000 people nationwide and attracting $3.6 billion in investment in 2024 alone.
Banks could see their global profit pools shrink by $170 billion over the next decade if they fail to adapt to rapid technological change.
This article was reviewed by Antony Peyton.
