18 April 2024

The Innovate Finance Global Summit (IFGS) celebrated its tenth anniversary this week, with leading FinTechs, policymakers and investors coming together at London’s Guildhall to discuss the future of the sector. To mark the anniversary, a time capsule documenting 10 years of FinTech innovation will be hidden in the City of London and opened in 10 years’ time.

Prime Minister Rishi Sunak made a short appearance via video message where he stressed the Government’s support for the sector, highlighted Innovate Finance’s recently launched Unicorn Council, and heralded the “power of technology to make life better for everyone.”

H/Advisors Cicero consultants were also in attendance, as well as our Founding Partner and Executive Chairman, Iain Anderson, who spoke at Monday’s session, “The Globe at the Polls” on this big year in democracy.

Overall, a key theme of the conference was the importance of creating an environment for start-ups to scale up. Many of the conversations also highlighted the power of partnerships – whether between investor firms and SMEs, or regulators and business. There was much ambition felt across the Summit, with a sense of pride for what the UK has achieved in FinTech, the need to continue to innovate and the need to create a regulatory environment that supports innovation and UK competitiveness.

Highlights of the IFGS

Economic Secretary to the Treasury, Bim Afolami MP, delivered a keynote speech on Monday.

Afolami set out the importance of the FinTech market to the UK, highlighting that 86% of digitally active UK adults use a FinTech product or service on a daily basis. HM Treasury is exploring the regulatory framework to oversee data sharing, seeking to make this fair and equitable, commercially sustainable and safe. Afolami announced:

• A new Taskforce on Open Finance, chaired by Centre for Finance, Innovation and Technology (CFIT), which will be working to create clear recommendations to drive a SME use case for smart finance; 
• The National Payments Vision will be published this Summer, before Parliamentary recess; and
• The Government will legislate by the end of July for regulators to introduce the regulatory framework for crypto assets, with the aim of driving forward transformational tech.

Tulip Siddiq MP, Shadow Economic Secretary delivered a keynote speech on Tuesday,

She set out Labour’s belief in the importance of FinTech in showcasing the UK’s strengths of the 21^st century – seeking to grow the economy by growing the industries of the future. Key points from her speech included:

• AI: Siddiq noted legislation is needed to set international standards for AI’s use in financial services. She said it would need to provide clear standards in AI safety whilst enabling firms to utilise technology.
• Open Banking: Tulip noted that the next phase of open banking would unlock the power of payments, leading to consumer empowerment and financial inclusion. She concluded that the UK must embrace open finance to support financial wellbeing.
• CBDCs: In her speech, Siddiq said a Labour government would advance the ongoing work on Central Bank Digital Currencies (CBDCs) to create a UK global hub for securities and tokenisation.
• Financial inclusion: Labour would also create a regulatory sandbox for financial inclusion in partnership with the FCA and PSR; testing financial products for underserved communities.
• Growth: Labour would explore using HMT to drive growth and tackle regional inequality, with the FinTech sector at the heart of Labour’s plan on inclusive growth. Labour would look to celebrate and hone the FinTech specialities of regional hubs in the UK – using Starling Bank in Wales as an example – to drive regional growth.
• Regulation: A Labour Government would work with the FCA to make its regulatory handbook less burdensome, stating that outdated FCA rules prohibit innovation. Specifically, Tulip said Buy-Now-Pay-Later regulation was a priority for Labour.
• Gender reporting: Labour wants to increase the representation of women in FinTech and champion the Women in Finance Charter, increasing gender reporting and guidance on diversity and inclusion.
• First 100 days: Finally, Siddiq said the Labour Party does not have the support of the civil service in preparing for government, so welcomed expertise from firms on Labour’s first 100 days in office. She requested those with ideas to kickstart her programme of work should reach out to her office.

Other speakers at the IFGS

• Aidene Walsh, Chair of the PSR, shared the end of year reflections of the Payments Systems Regulator (PSR). She noted the PSR’s relationship with the FinTech sector and wider community is mission critical, reflecting the strong focus on innovation which is built into the PSR’s statutory objectives.
• Sarah Breeden, the Deputy Governor for Financial Stability at the Bank of England, outlined the Bank’s approach and expectations towards payments innovation.

• Ian Phoenix, Director of Intelligence & Digital at the FCA spoke of the importance of innovation to the FCA, with tech and policy sprints, sandboxes and the innovation network supporting their work to protect consumers and promote competition in a rapidly evolving digital ecosystem.

• Julia Hogget, Chief Executive Officer at London Stock Exchange used her fireside chat to highlight the importance of drawing on the UK’s pool of institutional investment, the second largest in the world, to start up and scale up businesses, with the UK’s competitiveness dependent on connecting Unicorns with capital markets.

• Lord Philip Hammond took part in a fireside chat where he noted the FinTech sector has thrived, drawing down talent from around the world. He argued that we need to rethink the post-Brexit settlement to ensure firms are still able to hire seamlessly from overseas. He added, a firm needing specific technical expertise should be able to locate talent from anywhere in the world on a Thursday, and have them in their office the following Monday. Finally, Lord Hammond expressed concern over Labour’s workers’ rights agenda for small dynamic businesses.

Other Announcements

• Innovate Finance’s Unicorn Council for UK FinTech published six recommendations for policymakers which are designed to maintain the UK’s leading global position in FinTech. Core recommendations include the abolition of Stamp Duty, a rethink to regulation, broadening of the tax R&D scheme and business asset disposal relief. The Council also called for updates to the EMI and EIS schemes, as well as the introduction of a VAT-rebate scheme for early stage FinTechs.

9 April 2024

How can society manage the cross-cutting needs of an aging population?

On 9 April we convened a panel event to explore how we prepare society to cope as advances in modern medicine enable citizens to live longer. From public health to work and retirement, they examined implications of a hundred-year life and what it means for Government, industry and the wider population.  

Speakers:

• Yvonne Braun – Director of Long-term Savings, Health and Protection, Association of British Insurers  
• Chris Thomas – Head of the Commission on Health and Prosperity, Institute for Public Policy Research
• Steven Cameron – Public Affairs Director, Aegon 
• Karine Jegard – Head of Medical and Scientific Communication, HAVAS SO

Chaired by H/Advisors Cicero CEO, Mark Twigg.

As babies born today may be expected to live to 100, how do we prepare society to cope with the needs of an ageing population? From increasing responsibility to looking after our own health, to creating the right housing mix and social care settings for elder life, to managing expectations about work & retirement, this demographic change will have cross cutting impacts.

For more information please email emma.turnbull@h-advisors.global.

4 April 2024

Living to 100 years old – a prospect once considered rare, is now increasingly within reach. The number of centenarians worldwide has quadrupled over the last two decades.  In the UK, estimates show that 1 in 4 babies born in 2045 will live beyond 100.

But what does living longer actually mean for us as individuals? Are we prepared as a society to support a growing population of older adults?

To find out, H/Advisors Cicero conducted a survey (powered by Toluna fieldwork) of 1,000 UK adults, exploring people’s hopes, expectations and concerns surrounding this extended lifespan.

How do we feel about living longer?

When asked about their feelings at the thought of living to 100, gratitude and curiosity emerge as people’s most prominent emotions. UK adults are feeling grateful to have the prospect of a longer life and curious about the possibilities presented by longevity.

However, our findings show that over 1 in 4 people (26%) also feel apprehensive about the idea of reaching 100. ‘Anxious’, ‘fearful’ and ‘overwhelmed’ are also commonly cited emotions.

The spectre of old age?

Diving into the concerns that make people feel apprehensive about longevity, our survey reveals that the foremost concern is around declining physical health, with the large majority (78%) of UK adults stating that they worry about this. 2 in 3 (66%) people state that their primary worry is around the prospect of declining cognitive abilities.

While our survey highlights a spectrum of worries, it becomes clear that many of these emotions are due to people feeling unprepared for a longer life. Only half (52%) of the UK adult population feel adequately prepared in terms of career, financial security, and physical health.

The large majority (70%) of UK adults also have concerns around having to plan financially for a longer life. This is coupled with a notable distrust in the public pension system, with 92% stating that private savings and investments will be essential for ensuring financial security in old age.

Silver linings worth looking forward to

Yet, amidst concerns, optimism shines through. The majority of respondents see longevity as an opportunity to enjoy the fruits of their labour (78%) and pursue dreams and passions without time constraints (76%).

Our survey also shows that most UK adults think the prospect of living to 100 can encourage more conscious behaviours earlier in life. 84% of respondents think the idea of longevity could incentivise healthier lifestyles and 77% think it would encourage more proactive financial planning.

Ready or not? Society’s ability to adapt to changing demographics

In light of these hopes and expectations, the fundamental question remains whether society is ready to support individuals to unlock the opportunities offered by an extended lifespan. H/Advisors Cicero’s survey shows that almost two thirds (62%) of UK adults believe society is not adequately prepared to support a growing population of older adults, with 87% doubting the ability of the healthcare system to meet the demands of an ageing population. There is strong consensus (89% agree) that social attitudes toward ageing need to change as life expectancy increases.

To find out more about how we as a society can prepare as the 100-year life becomes a reality, we heard from experts from both health and financial services about building robust systems that can support citizens throughout their lives at our panel event on 9 April.

For a detailed summary of our event or any other queries about the 100-year life, get in touch here.

27 March 2024

Last week I attended PR Week’s PharmaComms Conference in London. The event brought together industry experts, thought leaders, and communication professionals to delve into the latest trends shaping our rapidly evolving healthcare sector. Amidst insightful discussions and engaging sessions, several key themes emerged, shedding light on the challenges and opportunities that lie ahead.

1. Market Access: Bridging the Gap

The pandemic has left a significant impact on Western health systems, resulting in backlogs and delays in patient care. For pharmaceutical companies, this poses a critical challenge: how can they ensure that their groundbreaking innovations reach the patients who need them most? The answer lies in integrated campaigns that not only address market access and reimbursement but also drive patient uptake.

2. Election Turmoil: Navigating Uncertainty

With elections on the horizon in Europe, the UK, and the US, the healthcare landscape is set for a seismic shift. Industry professionals recognise that election outcomes will significantly influence engagement strategies across diverse markets. Whether it’s policy changes, funding priorities, or regulatory shifts, communicators must stay agile and adapt swiftly to the changing political tides.

3. Collaborating for Impact: The Power of Partnerships

The challenges facing the UK’s health sector are multifaceted and complex. From declining life expectancy to the rise in chronic illnesses, no single entity can tackle these issues alone. Industry leaders are keenly aware of this reality and are actively seeking collaboration. By partnering with like-minded organisations, they aim to drive meaningful change. These partnerships extend beyond borders, transcending organisational boundaries to create a collective force for progress.

4. Battling Misinformation: A Call for Responsibility

In an era of information overload, trust in authoritative institutions like governments has hit an all-time low. Patients increasingly turn to social media for health-related advice, often encountering misleading or inaccurate information. The pharmaceutical industry recognises its responsibility in combating misinformation. But many people believe technology giants should step up their efforts to fact-check health information on public-facing platforms.

5. Embracing Artificial Intelligence: A New Frontier

Artificial Intelligence (AI) is our present reality. Pharmaceutical companies are dipping their toes into this transformative technology. From Google to Microsoft, industry players are exploring AI applications that can support their day-to-day work and communications strategies.

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In summary, the PharmaComms Conference provided a glimpse into the future of healthcare communications. As we navigate the complexities of 2024, the industry must remain agile, collaborative, and committed to accurate information dissemination.

26 March 2024

Following this month’s Budget, the Tories are increasingly running out of road to make a meaningful impact on public opinion ahead of the General Election. Regardless of election timing, the Labour Party finds itself in pole position to form the next Government.

Labour has maintained a significant poll lead since former Prime Minister Liz Truss’ infamous mini-budget in 2022. Both Labour and the Conservatives are bracing themselves for a gruelling election campaign. The Conservatives will attack Keir Starmer’s record and ask voters if they really trust Labour to manage the economy. Labour has been courting business, but their consistent poll lead has led to growing scrutiny. Businesses have largely been impressed by the Starmer-Reeves operation. But Labour’s commitment to a business-friendly environment is yet to be really tested. 

It is in this context that Labour launched its much-anticipated review of Financial Services, Financing Growth. On the face of it, most of the high-level principles represent more continuity than change. The calls for competitiveness, reinvigorated capital markets and greater innovation would not look out of place in a Conservative press release. “Inclusive growth” uses different language from the Johnson-era “levelling up”, but much of the underlying detail is essentially the same – developing regional hubs, attracting FDI and encouraging pension funds to invest more in the UK.  

Nevertheless, the differences are there.

Labour and retail financial services

First, is Labour’s primary focus on retail financial services. Concerns over bank branch closures, “cash machine deserts” and the general decline of the British high street are familiar territory. But Labour has also pointed out areas for further exploration – German-style long-term mortgages, a new strategy for financial inclusion and the regulation of buy-now-pay-later products. Labour’s sister Co-operative Party has been influential on developing Labour’s pledge to double the size of the co-operative and mutual sector, which Labour views as more “community oriented” than the traditional banking sector.  

Female leadership a priority for the potential first woman Chancellor

Shadow Chancellor Rachel Reeves highlights the importance of female leadership and increasing diversity in financial services, with recommendations to invest more in female-owned startups and address gender / BAME pay gaps. Labour is likely to increase reporting requirements and transparency metrics on firms to boost diverse representation. 

Green finance

This is a key pillar of Labour’s plans for the sector. It is also a key differentiation in their offer to the public, with sustainability-conscious voters a crucial part of their intended 2024 coalition. The Review accepts that Labour’s Green Prosperity Plan will require private sector investment, though it remains far from clear what incentives Labour might provide – especially as the £28bn annual figure has now been formally retired amid fears about fiscal irresponsibility. Labour plans to implement various sustainability disclosure requirements, develop the UK’s Green Taxonomy, boost the green covered bond market and decarbonise the UK’s housing stock through retrofitting. Well-intentioned, these initiatives could nevertheless amount to a significant rise in costs for industry. 

Closer alignment with Europe?

Finally, the Review does introduce some intriguing language on the UK’s relationship with the EU. Rather than talking about equivalence, Labour talks about reducing barriers to trade where London and Brussels are aligned. This could spell some form of alignment, possibly with London acting as a “rule taker” in areas where policymakers see little benefit in purposeful divergence. However, views would need to shift in Brussels for the UK to be given market access in return for a cherry-picked approach. 

Reducing regulation

Labour supports the ongoing Solvency UK reforms, to reduce the regulatory burden on insurers, with a view to liberalising capital for investment. But this transactional approach is not universal. In fact, Labour emphasises its support for the ringfencing regime – which sounds like opposition to the planned reforms, intended to take some mid-size banks out of the regime altogether. The memories of 2008, when Labour was blamed for its role in “under-regulating” the sector, remain instructive. 

Financial sector challenges for the next Government

Whoever wins the next General Election will inherit a challenging economic, political, and geopolitical landscape. Accordingly, taxation of the sector is likely to be a lightning rod within the Party, with Starmer and Reeves having backed an increase in the bank surcharge in the past while influential trade unions have already floated various models for increased bank taxation. The pressure on Reeves over her commitment not to cap bankers’ bonuses is a sign of things to come. A Labour Party faced with the prospect of cutting back public services, at least in real terms, may find the temptation of a politically popular taxes on bankers, and possibly other parts of the sector, too much to resist. 

Financial sector firms can take a lot from Labour’s Review. But the sector should not be fooled into thinking that Labour is ideologically identical to the Conservatives. Labour faces pressure from activists, trade unions and centre-left think tanks for higher taxes and more regulation of the sector. The industry will need to continually make its case, especially if there is a change of Government, in what might prove a less generous fiscal and economic landscape in the years ahead. 

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20 March 2024

WATCH: Samantha Niblett, Founder of Labour: Women in Tech talk about her organisation.

This week, H/Advisors Cicero, in partnership with Labour: Women in Tech, was delighted to welcome Darren Jones MP, Shadow Chief Secretary to the Treasury, to a roundtable discussion on how best to champion female entrepreneurs and boost investment in the UK science and technology sectors.

Darren explained how a Labour government would be a strong ally to the tech sector and specifically to women in tech, adding that female leaders are an untapped resource in the UK economy. Citing Rachel Reeves’ claim during her Mais Lecture that harnessing female entrepreneurship could add £200bn to UK GDP, Darren emphasised that partnership between government and tech companies is vital.

Women’s careers in tech and investment in female entrepreneurship

The roundtable centred around the challenges that the next government will have to face in this area – particularly the lack of investment in female-founded companies, which receive less than 2% of venture capital funding. The discussions shed light on how investment programmes are often inadequate in both addressing the knowledge gap that precludes women from a career in tech, as well as in identifying the firms and individuals that most deserve and would most benefit from funding.

The discussion also looked at whether the lack of women in positions to make investment decisions has an impact in the lack of investment in female-founded companies, despite the appetite among institutional investors and impressive track records of returns. Potential solutions put forward included a B-Corp style seal of approval that companies can apply for to show their commitment to invest in women. Labour’s proposals to empower the British Business Bank (BBB) with a broader remit to expand access to capital, as well as its planned reforms to reform the Apprenticeship Levy into a Skills Levy, were highlighted as promising steps forward.

Participants emphasised the need for vocal backing from government for funding and skills programmes to increase visibility of the significant work that women in tech are making to the sector and the broader economy. Such initiatives must be sufficiently well-funded to avoid over-mentoring and deliver tangible benefits to recipients.

3 areas for developing women’s advancement in the tech sector

Three key areas were identified as important for advancing the position of women in tech:

• beginning with capital;
• then the connections which open the door to that capital;
• and lastly the contracts that help to match buying organisations with female-founded companies.

Darren Jones welcomed the points raised throughout the roundtable, which comes at an important time with Labour working on the delivery of three separate products that will seek to tackle the issues under discussion: the election manifesto, delivery notes (which can delve deeper into the policy detail), and Labour’s longer-term vision for government.

H/Advisors Cicero would like thank Samantha Niblett, CEO of Labour: Women in Tech. Find out more about Labour: Women in Tech’s work here: https://labourwomenintech.org/

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