On Thursday (6th July) Chris tabled a debate in the House of Lords about what role financial technologies (fintech) can play in promoting financial inclusion. Specifically he asked “Her Majesty’s Government what steps they are taking to promote financial inclusion through the use of innovative financial solutions and new technology, including open access to payment infrastructure, smart phone applications and distributed ledger technology.” During his speech he explained why he was interested in both fintech and inclusion and called on the Government to commit to various actions.
“Why am I interested in fintech? I am interested because it is innovative and disruptive and has the potential to address some of the issues that have dogged our society for decades, not least the inability for SMEs to have consistent and timely lines of credit. Perhaps even more significant is the fact that so many hundreds of thousands, nay, millions, of our fellow citizens have been effectively locked out by being underbanked or unbanked. There has been no real sense that pressure has been put on, or desire felt by, the major financial institutions to lend to SMEs or address questions around the underbanked and unbanked of our society.
Why am I interested in inclusion? This goes right back to the beginning for me. It seems extraordinary that everybody would not be interested in how we enable and empower every single member of our society to play their part and to be fulfilled in whatever field they want. Financial inclusion is critical to this. When we set it alongside digital inclusion, we have two of the most significant building blocks that have to be so well set if we are going to address some of the most significant issues facing citizens in Britain right now.”
Chris went on to ask the Government to look at regulation and funding; by increasing the responsibilities of the Financial Conduct Authority and giving a specific responsibility for financial inclusion. He also asked if the Government would commit to at least equaling the support that the European Investment Bank has given for fintech once we leave the European Union. Chris also highlighted the incredible potential of some initiatives for distributing benefits the Department of Work and Pensions have been looking at. “We have had some great proofs of concept, but we need this to get to scale and then we will truly see the impact and the difference that fintech can make in terms of financial inclusion.” In summing up Chris called on industry and Government to work together to ensure that fintech continues to thrive, continues to deliver and continues to be a great British enabler and a great British export, through and long beyond Brexit.
Read full text here.
Financial Inclusion Commission, Lord Holmes: Fin, Tech the Opportunity