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FINTECH’$BILLION-DOLLAROPPORTUNITIES10 PRINCIPLES TO SECURE

LONDON’S FINTECH FUTURE

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London is the leading fintech ecosystem in the world.

However, we can't be complacent.

This campaign outlines ten guiding principles to secure the future success

of London's fintech industry.

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Level39 believes fintech companies can realise billion-dollar opportunities by scaling their businesses in the UK.

Against a backdrop of market uncertainty and Brexit negotiations, now is the time to start telling a more positive story about London’s continued position as the leading fintech ecosystem in the world.

We convened some of the country’s leading fintech entrepreneurs and banking executives to discuss an action plan to secure Britain’s fintech future.

We have distilled their views into this report with a summary of our discussion alongside ten principles for the fintech community to adopt.

These are ten guiding principles that, if embraced by London’s fintech ecosystem, would allow British fintech success to thrive. They will be shared with fintech entrepreneurs, investors and government bodies to ensure the industry speaks with one voice.

FINTECH’$BILLION-DOLLAROPPORTUNITIES

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L E V E L 3 9 :

the fintech roundtable

A T T E N D E E SAnthony Beilin, Head of Innovation, Aviva

Asif Faruque, Head of Content, Level39

Ben Brabyn, Head, Level39

Devie Mohan, Fintech Industry Researcher, Burnmark

Giles Andrews, Founder, Zopa

Ishaan Malhi, Founder, Trussle

James Sore, Chief Investment Officer, SyndicateRoom

Maria Scott, CEO, TAINA Technology

Maxime Bernard, Vice-President, GP Bullhound

Russ Shaw, Founder, Tech London Advocates

Sam Tidswell-Norrish, Principal, Motive Partners

Simon Rabin, Founder, Chip

Tomo Nakamura, UK Country Manager, Doreming

The summer of 2017 will be remembered as a nadir of public morale. The public discourse has been dominated by political turmoil and conflicting

messaging about Britain's role on the international stage.

However, on the 27th July, Level39 gathered a group of fintech entrepreneurs to start telling a different story. This was an opportunity to celebrate fintech and agree a set of principles around which the many voices in the sector could coalesce.

Fundamental to the discussion was how fintech entrepreneurs could start to change the mood music and boost morale. The strength of London’s fintech ecosystem and the reasons to be cheerful about its future, became quickly apparent in the conversation.

‘We’ve created an industry that is being replicated around the world’ Giles Andrews,

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Founder of Zopa announced. ‘We have more active challenger banks than anywhere else in the world.’ The entrepreneur was a clear advocate for London’s central position within the global fintech community.

Russ Shaw, Founder of Tech London Advocates, agreed with this positive sentiment, ‘London is one of the world leaders of fintech. The dynamism and creativity is world leading and we have to push forward in saying "Brexit or not, we are still going to be a leader in fintech."’

London’s cultural characteristics mean this city will always be an attractive place to do business.

Whilst the strength of London’s fintech sector was never in doubt, many felt that the country’s perception of its position within the world needed to change. Sam Tidswell-Norrish, Principal at fintech private equity firm Motive Partners, felt: ‘our culture puts us in a perfect position to be a fair broker, to create global alliances and use our legal system to mediate. We can’t be the best at everything, so we need to adopt the philosophy that 10% of a big number is better than 100% of nothing.’ Talent was the single biggest concern about the future of fintech in London. Giles told the group that ‘London has been this incredible melting pot that has attracted world-class talent from around the world and its continued ability to do so is what worries me the most.’

Maria Scott, CEO of TAINA Technology, agreed, raising concerns that ‘unless we start rewarding our developer talent in the UK, we may may start to see them moving to other cities across Europe or in Asia.’

During the roundtable, all agreed to principles that were a combination of showcasing the unique strengths of London fintech and addressing the challenges facing the industry.

As Asif Faruque, Head of Content at Level39, put it, ‘our job is to shape a message that builds on what Britain has always been known for – innovation, invention and people – and tell it in a coherent and compelling way.’

The intention is for these principles to be a rallying call for the industry. A new ambition for fintech entrepreneurs who care about the future of London and a commitment to act as public servants for the good of consumers, business and the country.

Ben Brabyn, Head of Level39, closed the event by noting how ‘the private sector is increasingly shaping public life. This campaign is about celebrating not only the billion-dollar opportunities fintech is addressing, but also the benefits fintech brings to practitioners, shareholders and customers as well as the public and our economy.’

WE ARE ALL PUBLIC SERVANTS NOW

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L E V E L 3 9 :

the financial services roundtable

A T T E N D E E SAndrew Briscoe, Director of Product Innovation, HSBC

Asif Faruque, Head of Content, Level39

Ben Brabyn, Head, Level39

Chris Thomas, Head of European Innovation, Fidelity Investments

Christopher Ngoi, Innovation Lab Manager, UBS

Erkin Oksel, Founder, EyesClear

James Schofield, Managing Director, Global Head of TMT, Lloyds

John Elliott, Head Innovation & Fintech, Investec Bank

Maria Scott, CEO, TAINA Technology

Mikael Down, Director of Policy & Analysis, Banking Standards Board

Peter Stephens, Head of Blockchain & UK Innovation, UBS

Scott Abrahams, Senior Vice President, Business Development, Mastercard

At the heart of Canary Wharf on 7th September, Level39 brought together senior representatives from major UK banks to consider how financial

institutions can embrace technology and accelerate the growth of London's fintech industry. These leaders were tasked with showcasing the strides that are already being taken and responding directly to the five guiding principles agreed at Level39’s entrepreneurs’ roundtable.

It was immediately clear that the UK’s traditional gravitational pull is one of its unique strengths. As Peter Stephens, Head of Blockchain and UK Innovation at UBS, commented: 'The exceptional balancing act that the UK has managed is to bring together strong capital markets, regulation, and a pivotal position at the heart of global markets

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and geographies.'

John Elliott, Head of Fintech and Innovation at Investec Bank added: 'Technologies built in the UK are designed to work globally, whereas other ecosystems tend to simply work domestically.'

However, this celebration of the heritage and strength of the country’s financial institutions gave way to a discussion of the challenges and opportunities that have arisen in the aftermath of the global financial crisis.

Erkin Oksel, Founder of EyesClear and former Citi employee, outlined the steps required for banks to realise the potential of innovation: 'Incentives in banking are aligned with process rather than innovation. This needs to change.'

Considering the opportunities posed by fintech, the group wholeheartedly agreed that collaboration across the ecosystem will be the secret to long-term success. James Schofield, Global Head of TMT at Lloyds commented: 'Startups give the opportunity for incumbents to regain the trust that was lost through the financial crisis. By working together, we will resolve today’s significant social and economic challenges.'

Collaboration and partnership were, therefore, fundamental to the guiding principles agreed at this roundtable. An open and honest acknowledgement of the humility required to continue the industry’s early progress was also key, with Mikael Down of the Banking Standards Board concluding: 'what we must try to do is draw out common qualities that should be demonstrated by any organisation to earn a reputation of trustworthiness.'

The guiding principles set down by both the entrepreneurs and the financial services representatives are the foundations for the future of the UK’s financial industry, a future dominated by collaboration and technology. The prolonged period of soul-searching that followed the global banking crisis and the subsequent recalibration of the financial industry offers a unique opportunity for fintech innovation to become a central pillar of the UK economy.

Ben Brabyn, Head of Level39, captured this mood in his closing remarks: 'We must celebrate our common successes and showcase our collective will to work towards a union of finance and technology that delivers economic returns and social good.'

A FUTURE DOMINATED BY COLLABORATION AND TRUST

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guiding principles: for fintechs

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A critical mass of entrepreneurs, financial institutions and customers makes the UK the best growth environment in the world for fintech companies. London's ecosystem has created the world capital of fintech. 2

T E L L A P O S I T I V E S T O R Y A B O U T B R I T I S H F I N T E C H

Angels and VCs can seem highly attractive. However, don’t lose sight of the importance of long-term commercial relationships. A good customer won’t pull their funding out after three years. All they want is the best possible service – a commitment to bring the best out of your company.

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3S T A Y I N T H E U K A N D C O M M I T T O T H E H U M A N C A P I T A L H E R E

With a concentration of highly skilled tech workers, first rate universities and financial services expertise, access to quality talent in the UK justifies an ongoing presence for all fintech companies here. World-class talent now needs to be rewarded to make London the only choice.

4C E L E B R A T E T H E U K ' S U N I Q U E C U L T U R E A N D B U S I N E S S L A N D S C A P E

Recognise the conditions that make the UK such a world-leading environment for fintech growth: low corruption rates, a digitally-enabled population, friendly regulatory bodies, supportive government agencies, tax relief and a cosmopolitan city.

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London may not compete with the US or Asia in terms of scale or investment. However, this is a place of global convergence and the British economy will benefit from a new role of international broker, offering a test bed for innovation and platform for scale.

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guiding principles: for banks

6P A R T N E R W I T H A N D P U R C H A S E F R O M B R I T I S H F I N T E C H S T A R T - U P S A N D S C A L E - U P S

Entrepreneurs offer unparalleled access to talent, insights, and innovations that will redefine the future of the UK’s financial services industry. From pioneering best practice to transformative technologies, start-ups and scale-ups provide the vital tools to ensure that the UK strengthens its position as a globally significant banking hub.

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The UK is a beacon of banking tradition and innovation. Bringing together a uniquely international legal system, a leading position as a capital market, and a highly supportive regulatory environment, the UK has the opportunity to define its economic destiny and prosperity.

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8A C K N O W L E D G E C H A L L E N G E S A N D S C R U T I N I S E F A I L U R E

The banking industry has been rocked by crisis, turmoil, and uncertainty. Humility in this context will be critical to ensuring that the financial system delivers for the many, not the few, and regains public trust along the way. Embrace the lessons learned from failure and strive for success.

9A D H E R E T O D O I N G G O O D , A S W E L L A S D O I N G W E L L

After years of rebuilding, now is the time for banks to embrace business models that generate profit alongside social impact.

10C R E A T E A S U S T A I N A B L E A N D O P E N F I N A N C I A L S Y S T E M

Through thousands of funders and founders taking risks together, we can aim to drive universal access to financial services, create a more embedded, efficient banking system and address fundamental social issues the world over.