Fintechs promote collaboration as UK elections loom

As previously reported by The Green Sheet on Aug. 1, 2023, in "Advocates talk, regulators listen," financial services advocates are working with legislators on both sides of the Atlantic in an effort to stabilize business-friendly practices in times of political and economic uncertainties.

The Payments Association has championed these efforts, most recently with the Oct. 5, 2023, publication of its Payments Manifesto: Building a World Class Payments Industry - Together,, a briefing designed to educate policymakers on trending issues and concerns in digital commerce, fintech and banking.

Tony Craddock, director general of TPA, unveiled the document at the Oct. 4, 2023 PAY360 awards dinner in London, stating, "Our aim is for the UK payments industry to lead the world in providing innovative solutions that satisfy consumer and business needs, as well as, through the economic contribution our industry makes to the UK, be a driver of social wellbeing and economic growth."

Craddock went on to say that industry stakeholders are invested in providing UK political leaders with policy suggestions to help newly elected leaders get quickly up to speed.

Four building blocks

Emphasizing that collaboration is a key growth driver for payments and financial services, the manifesto urged private and public sectors to coordinate objectives, resources and dependencies across competing initiatives to advance innovation and resolve friction among interdependent, conflicting and competing initiatives.

These efforts can be achieved using four building blocks, which the authors summarized as follows:

1. Relentless focus on unmet consumer needs.

2. Enhanced incentive and [prioritization] models.

3. Boundaries that include all players.

4. An alliance across the payments ecosystem.

Three top pledges

Noting that TPA's mission is to drive growth through business best practice, the association pledged to promote user-centric, resilient and cost-effective commerce in several ways. Among them is tackling fraud and scams by eradicating vulnerabilities that enable criminals to commit fraud and other economic crimes through cross-industry data sharing among financial institutions, big tech and merchants.

The association also promotes is mission by advocating for innovative regulations and standards that foster innovation, encourage competition and protect consumers in the following three ways:

1. Encourage the Financial Conduct Authority (FCA) and Payments Systems Regulator (PSR) to employ measured, proportionate approaches to regulating payments firms.

2. Urge government leaders to hold FCA accountable for supervising Electronic Money Institutions (EMIs) and Payment Institutions (PIs).

3. Urge FCA to improve EMI and PI license application systems.

The TPA also promotes account-to-account payment adoption in the following four ways:

1. Support the current work being done by the Joint Regulatory Oversight Body (JROC) to create a competitive and sustainable open banking ecosystem that delivers alternative payment options for merchants.

2. Support the development of equitable commercial models for the open banking ecosystem Develop a system for open banking payments that provides appropriate consumer protection and a dispute resolution service that protects all open banking stakeholders, supported by the appropriate economic model.

3. Shape a new funding model and governance of Open Banking Ltd that enables innovation, competition and consumer benefit without being dominated by any party.

4. Work with public sector [organizations] to access the cost savings and data enhancements derived from open banking as proven by HMRC.

Money evolves

Noting that the United Kingdom is well positioned to lead innovative payments and banking practices worldwide, Craddock said the manifesto sets a clear vision for a globally interoperable digital currency ecosystem that facilitates a modern, digital future.

"Money has always evolved throughout time - it's an unstoppable historical process," he said. "However, there are skeptics with strong views about the adoption of new technologies, particularly within digital currencies. Our duty as an industry is to fight against misinformation and scaremongering in this important area to give the UK the ability to lead the world."

A copy of the Payments Manifesto is available at 25744204.fs1.hubspotusercontent-eu1.net/hubfs/25744204/Editorial/6075_Payments_Association_Manifesto_V12.pdf

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