FF News: Top Fintechs Comment on Liz Truss’ Appointment as UK Prime Minister

Liz Truss, former UK Foreign Secretary, has been appointed as the next Prime Minister of Great Britain after defeating former Chancellor Rishi Sunak in a contest for the Conservative leadership.

As the world reacts to the news, what do Finance & Technology businesses think about the New Prime Minister?

Frédérique Carrier, Head of Investment Strategy at RBC Wealth Management, commented: “Prime Minister Truss will likely be less keen to balance the country’s books than former chancellor Sunak would have been, and interest rates are likely to increase further during her premiership.

PM Truss seems less fiscally conservative than former chancellor Sunak. She now seems to be in favour of supporting the economy other than through tax cuts. This ultimately means higher borrowing, and in turn, means the Bank of England could be forced to increase rates further than otherwise would have been the case.”

PensionBee CEO, Romi Savova, stated: “Newly appointed Prime Minister Liz Truss will have a multitude of immediate decisions to make, in order to bring certainty and stability to businesses and consumers alike … I would urge the new Prime Minister to prioritise policies that support consumers and businesses in the short term, instead of measures that kill demand.”

Savova added “It’s imperative for the government not to tip the economy into an unnecessary recession by raising taxes. The new Prime Minister should not be afraid to borrow a bit more; and choose versatile short-term policy measures that are quick to implement but equally quick to reverse, such as cutting VAT.

Under this latest administration, I hope the new Minister for Pensions and Financial Inclusion will focus on putting consumers back at the heart of pensions, by finally legislating a 10-day pension switch guarantee”

Simon Cureton, CEO of Funding Options, shared an optimistic viewpoint: “We welcome Liz Truss’ evident passion for the City as a ‘jewel in the crown’ and trust that she has the fintech community in mind, as much as the incumbent institutions, as she sets out her economic agenda in the months that follow. When Sir Ron Kalifa’s review of UK Fintech was published last year, she recognised there are many opportunities to make the UK the epicentre of financial innovation and pointed to boosting our presence in global markets, something we hope she takes with her from the foreign office.

There are reasons why the UK’s financial sector is so admired overseas, not least the rules of law, regulation and expertise that resides within the Square Mile and beyond. Her promised ‘war on technocrats’ should be handled with care, but this represents a chance to position the UK as a leader in realising the benefits of Open Banking and embracing the technologies that will make lender decision-making faster and more robust than ever.”

From the cryptocurrency industry, Luno’s Global Head of Public Policy Thomas Tudehope stated: “Luno looks forward to working with Ms Truss and her team to design a regulatory framework for crypto which will boost economic growth, create thousands of jobs and protect consumers.

As set in our recent response to Parliament’s inquiry into the crypto sector, Luno believe there is an urgent need to develop and implement a regulatory framework that protects consumers, ensures all crypto companies operate at the highest standards, and enables British firms to plan with the certainty that is required if we are to position the country as a world-leader in the digital asset ecosystem”

In the Insurtech sector, Co-Founder & COO of hubb Edward Halsey shared his thoughts: “I think the UK Tech sector has reason to feel positive about a future under Liz Truss, particularly given her previous focus on boosting the UK’s digital trade globally. Fintech and InsurTech in particular have seen a great increase in demand as a result of Coronavirus and with tech contributing more than 2.9m jobs to the economy, Truss will be better positioned than ever to follow through on her previously stated goal of turning the UK into the technology hub for the global economy.”

Alistair Sergeant, CEO of AI at Equantiis commented: “Truss’s first priority must be addressing the need for urgent stabilisation in the UK’s economic strategy and getting confidence and reassurance back into businesses. The tech industry also needs specific support incentives that ensure businesses keep on investing during a downturn. We are already witnessing organisations cancelling innovation projects so they can hold onto cash in case the road ahead is bumpy. When this happens it only sets us back in terms of our technological advances and global competitiveness, putting further risk to employment within the sector. The UK simply cannot keep putting off much-needed technology investments that have already had significant delays.”

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