Our first Growth Sprint in Leeds explored how financial inclusion, digital identity and open finance can drive growth and innovation in the region's financial sector.
Agenda
Our first regional Growth Sprint formed a core part of the FCA Forum in Leeds, a flagship event bringing together local industry leaders, innovators and government for a day of collaboration, featuring:
- The Chancellor of the Exchequer, Rachel Reeves, announced the launch of the FCA-PRA Scale-up Unit.
- A fireside chat with our chief executive, Nikhil Rathi.
- Talks about unlocking regional growth.
- Exhibition of FCA support services available to innovators.
The Growth Sprint allowed cross-sector teams to explore how to unlock regional growth opportunities in the North through innovations across 3 themes:
- Financial inclusion
- Digital identity and ‘know your customer’ (KYC).
- Open banking and open finance.
Participants developed practical solutions following a 4-phase approach:
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1
Regional identity mapping and scaling potential
Reflecting Leeds and the North’s strengths as a centre for innovation, talent and collaboration.
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2
Gap analysis and prioritisation
Identifying key barriers to growth in each theme, such as digital divide in financial inclusion, trust in digital identity, and small- and medium-sized enterprise (SME) access to finance.
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3
Capabilities and resource mapping
Mapping regional assets, including fintech and regtech expertise, data infrastructure, and collaborative networks.
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4
Solution and action planning
Developing proposals to address identified challenges.
Each team presented their findings, recommendations and post-Sprint commitments in a showcase at the FCA Forum, with a lively Q&A.
Outcomes
Financial inclusion
Key challenges
Many in Leeds and the North are under-served by traditional financial products, particularly those in SMEs and vulnerable groups.
This is due to:
- Inconsistent or inappropriate data to support good outcomes
- Complicated processes
- Lack of access to financial products.
Key strengths
Leeds has a strong fintech ecosystem and collaborative culture across sectors.
The FCA’s and the Bank of England’s presence in the region, along with the Government and public sector efforts to set a mission and vision to growth, were also highlighted.
Recommendations
Participants believed that a prosperous, happy and well-connected region is possible when we provide access to fair, affordable financial services by:
- Creating a decentralised data source which will better represent under-served consumers, such as a ‘shadow data bank’ using alternative data sources that provide a more appropriate and current picture of a person’s financial health.
- Building partnerships between financial firms, fintechs, credit unions, consumer organisations and regional authorities to make Leeds a centre of excellence for financial inclusion.
- Leveraging Leeds’ diverse financial ecosystem to design inclusive products tailored to local communities and SMEs.
- Promoting financial education and wellbeing initiatives that empower individuals and businesses to make informed decisions.
Post-Sprint commitments
Participants shared their willingness to raise awareness, share experiences, drive cross-sectoral collaboration and start a pilot scheme for the ‘shadow data bank’ in the region.
Digital identity and 'know your customer' (KYC)
Key challenges
Identity verification remains fragmented and costly, with SMEs and consumers facing friction in onboarding processes.
Current know-your-customer (KYC) frameworks often rely on siloed data sources, which creates duplication and inefficiencies.
The main barriers to adoption of digital identity solutions include concerns around data privacy, interoperability and trust.
Key strengths
Participants believed that the region benefits from a strong technology and fintech ecosystem, with expertise in digital innovation and cybersecurity. The presence of regulators and public sector bodies in the region provides a foundation for shaping trusted frameworks. Leveraging its reputation for innovation and collaboration, Leeds is seen as a potential ‘north star’ for launching trusted digital identity solutions.
Recommendations
Participants suggested a singular form of trusted digital identity and simpler method of verifying it is the way to go.
The region could become a hub for trusted digital identity by:
- Developing interoperable digital identity solutions that work across financial services and public sector platforms.
- Creating a regional ‘identity trust framework’ aligned with national standards to ensure security and compliance.
- Leveraging advanced technologies such as biometrics and AI for secure, frictionless onboarding while maintaining privacy safeguards.
- Encouraging cross-sector pilots involving banks, fintechs, and government to validate scalable models.
Post-Sprint commitments
Stakeholders expressed interest in forming a working group to continue exploring digital identity solutions. The group would aim to balance consumer experience and protections, and pioneer ‘Digital Identity for Good’, involving universities and fresh talents to boost inclusion and adoption.
Open banking and open finance
Key challenges
Low numbers of SMEs have adopted open banking tools, due to:
- Limited awareness.
- Perceived regulatory complexity.
- Expensive payment system costs.
There are also concerns around data portability, consent management, and trust in third-party providers. Fragmentation in standards and APIs was seen as slowing progress.
Key strengths
Leeds is uniquely positioned to lead on open finance innovation. The city boasts a large SME base, a vibrant fintech sector and strong financial services talents. Regional assets include advanced banking APIs, fibreoptic internet capability, and political support from local government and regulators, including the FCA’s presence in Leeds. These strengths provide a solid foundation for scaling open banking solutions and driving regional growth.
Recommendations
To speed up adoption and unlock the benefits of open banking for SMEs, participants recommended:
- Launching targeted awareness campaigns and local pilot programmes to build trust and demonstrate the value of open banking.
- Collaborating with regulators and local authorities to simplify regulatory processes and provide clear guidance for onboarding.
- Enhancing technology infrastructure, including banking APIs and fibreoptic connectivity, to support seamless integration.
- Offering financial incentives and support schemes to encourage SMEs to transition to open banking solutions.
Post-Sprint commitments
Stakeholders planned to raise awareness, share best practices, and run a local multi-stakeholder pilot to test the open finance technology, with the ambition to build a trusted ecosystem that enables SMEs to confidently adopt open banking and drive regional growth.
Next steps
We are committed to making the outcomes of our first regional Growth Sprint as tangible and impactful as possible.
Insights and ideas from the sprint are informing our work in growth strategy, policy development and scoping future innovation programmes.
We’re considering the recommendations from Leeds as part of our broader efforts to support financial inclusion, digital identity and open finance across the region.
We’ll continue to engage with stakeholders and share opportunities to take part.
If you want to get involved, visit our list of TechSprints or email [email protected].
We value your feedback and participation as we work together to shape the future of financial services and drive positive change for Leeds, the North and beyond.
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