On 14 November 2024, the newly appointed Chancellor of the Exchequer, Rachel Reeves delivered her first Mansion House Speech, leaving many players in the fintech industry feeling mixed emotions. We explore the reasons for optimism as well as why some may be calling for caution.
In her Mansion House Speech, Reeves referenced the recently announced Autumn budget and how it was a “once in a parliament budget” aiming at wiping the slate clean. She went on to explain how it aimed to create economic stability and improve economic growth by changing the course of public investment.
Following this, Reeves revealed plans to tackle new areas including improving private investment, reforming capital markets, a pensions review, and more. So how did the industry respond?
The National Payments Vision
Unsurprisingly, one of the biggest talking points for the fintech sector was the National Payments Vision, which Reeves said will show “decisive action to progress open banking … and support our fintech businesses.”
Jim Conning, banking and alliances director at AccessPay
Responding to this statement, Jim Conning, banking and alliances director at AccessPay, the cloud-based payments platform said: “The formation of the National Payments Vision represents a significant step forward for the UK’s payments ecosystem.
“While this initiative brings welcome attention to payments infrastructure innovation, we must ensure our approach is measured and purposeful.
“The existing payment channels have earned the trust of both businesses and consumers through years of reliable service. As we embrace new opportunities for innovation, it’s crucial that we focus on addressing genuine market needs rather than pursuing change for change’s sake.
“The breadth of expertise within the vision is encouraging, but we should leverage this knowledge to enhance and evolve our current trusted systems, rather than assuming wholesale transformation is always necessary.
“Our focus should be on targeted improvements that deliver tangible benefits to end-users while maintaining the stability and reliability that our existing payment infrastructure provides.”
Tom Burton, director of external affairs and policy at GoCardless
Tom Burton, director of external affairs and policy at GoCardless, the online payment gateway, also responded to the Vision saying: “Setting a clear ambition for seamless account-to-account payments to be developed as a ubiquitous payment method is the right way forward. We welcome the support for upgrading the underlying payments infrastructure and developing a commercial model for open banking. We look forward to working with the Government to implement what is a bold and innovative Vision.”
A change in attitude to APP fraud and open banking
Alex Reddish, head of market expansion and GTM strategy of Tribe Payments
Alex Reddish, head of market expansion and GTM strategy at paytech Tribe Payments broke down the impact the National Payments Vision would have on two specific areas: open banking and APP fraud.
Discussing open banking, Reddish said: “The Financial Conduct Authority (FCA) stepping in to oversee open banking, taking over from the Payments System Regulator (PSR) is a bold move that signals frustration with the pace of progress but also offers hope for more decisive leadership and greater collaboration between the public and private sectors.
“The UK was a trailblazer in open banking, but progress has significantly stalled in recent years. With the FCA at the helm, we need swift agreement on sustainable commercial models to reignite innovation and cement the UK’s status as a global leader.
“As always, balancing regulation with innovation remains a tightrope act. Overregulation risks stifling creativity and investment, while a light touch leaves consumers exposed. If the UK wants to stay competitive, the government must aim for a framework that promotes innovation without compromising trust and security.”
On the topic of APP fraud, he added: “This is a long overdue shift in focus since financial institutions have consistently shouldered the burden of reimbursement, while fraud often originates on these platforms. All stakeholders need to play their part in protecting consumers if we’re serious about their safety.”
Driving security, choice and transparency
Lisa Picardo, chief business officer UK at PensionBee
Commenting on the potential of new ‘megafunds’, Lisa Picardo, chief business officer UK at PensionBee, the pension provider commented: “A proposal to create pension megafunds could signal a transformative shift for the UK pension landscape.
“The creation of larger funds does have the potential to bring scale benefits, such as improved investment opportunities in areas like infrastructure and green projects, but these advantages must be weighed against the risks. Clear governance, accountability, and a commitment to responsible investment are essential to balancing savers’ best interests with the drive for innovation.
“While we support any initiative aimed at strengthening retirement outcomes, it’s critical that consolidation efforts prioritise savers’ returns, ensuring that member security, choice and transparency remain central.
“In addition, any size requirements should be part of a broader strategy that enables diverse providers to thrive while delivering strong returns and supporting responsible investment, ensuring that all savers can access high-quality, value-driven pensions.”
Another mixed bag
Sam Hields, partner at early-stage tech VC OpenOcean, notes that there were some things to be optimistic about following the speech. However, he is yet to be convinced that every idea brought up will live up to the bill. He said: “After a mixed-bag Budget, this speech will raise a number of question marks for the investment community. To her credit, Chancellor Reeves will have been locked in rooms with investors for months, trying to chart a course between ambition and realistic steps for growth.
It remains to be seen, however, whether a world-first private stock market and new pension “megafunds” will actually open the door to billions in new investment for UK plc and infrastructure – or just add more hot air to the debate.
“Pisces, as an idea, raises a couple of interesting questions. First, there’s a concerning parallel with the era of SPAC-driven listings. In a more buoyant market, we saw companies fast-tracked to public markets with limited maturity—will Pisces have the mechanisms in place to avoid similar risks? On the upside, since Pisces isn’t open to the general public, this could provide a layer of control and limit exposure to speculative investments.
“Also, while there’s certainly value in trying to create a counterweight to the pull of deeper foreign markets, I’d question how much Pisces genuinely addresses the issues facing the London Stock Exchange (LSE). The National Insurance hike for employers in the Autumn Budget represents a far greater counterweight to growth and risk-taking for entrepreneurs. At the end of the day, it’s about incentives, and this might be one step forward after two steps back.
“Consolidating pension funds into ‘megafunds’ might make them easier to interact with, but it doesn’t tackle the narrow mandate under which many UK pensions operate. Unlike US endowments like Yale, which have thrived by investing heavily in high-growth sectors, UK pensions remain fixated on blue-chip stocks, sidestepping opportunities in venture and innovation.
“To unlock genuine growth, we need more than economies of scale; we need a shift in mindset. High-margin sectors like fintech, AI, and data infrastructure offer substantial returns, and the UK is well-positioned in these fields. However, without flexibility in allocation, we risk sidelining transformative investments that could boost both the economy and pension outcomes.”
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