The financial and related professional services industry is effectively a digital industry, given the central role that technology and data play across its ecosystem. Technology adoption will continue to transform the industry by driving efficiencies, enhancing security, optimising services and improving customer experiences and outcomes.
Our response to the Technology Adoption Review highlights the key considerations to ensure that the industry can continue to embrace technology and innovation and secure its future international competitiveness and contribution as an enabler of growth, innovation and climate adaptation across the UK economy.
In summary,
- Policy and regulatory environment: A proportionate, predictable, and agile regulatory environment is essential for fostering technology adoption. A non-statutory, ‘regulation-by-application’ approach to regulating technologies is positive. However, the UK must move more quickly to bring critical technologies, such as crypto assets, into the regulatory perimeter, allowing their potential to be realised sustainably while proportionately managing the associated risks. Consistency, clarity and long-term transparency of further changes to policy and regulations, as well as plans and timelines, are key to maintaining UK leadership.
- International interoperability: The international governance landscape for technologies is becoming complex and fragmented. The UK must influence and align with international standards, while not imposing additional or unnecessarily stringent requirements that could compromise its competitiveness.
- Digital infrastructure: The UK’s digital infrastructure must keep pace with rapid technological advances. The government has committed to publishing a long-term plan for the UK's AI infrastructure needs. The government should also consider how it can harness the opportunities of the twin digital and green transitions in a coherent and joined-up way across government departments.
- Access to skills and Talent: The next generation of UK citizens must be at the forefront of technology to ensure that the UK is seen as the preeminent global talent hub for the world’s most important businesses. The UK must invest in its domestic talent pool, including improvements in secondary education, particularly STEM subjects and future technology skills. A flexible and competitive visa system is also needed to ensure the UK can attract and retain top global talent and innovation, bridge talent gaps, promote knowledge exchange, and drive the technological advancements necessary for long-term economic growth and global leadership.
- Fostering Innovation and Growth: As recognised in the AI Opportunities Action Plan, homegrown technology will bolster future technology adoption and innovation across the UK by fostering a self-sustaining ecosystem of innovation. It is vital that the government creates the conditions to nurture innovative home-grown companies throughout their growth journey, leveraging the UK's world-leading research ecosystem and supporting UK university spinouts, start-ups and scale-ups.