Radical shake-up planned for London’s financial services

The Government is looking to make listing on the LSE more attractive, and considering cutting back European regulation on how much capital banks and insurance firms must hold

Post-Brexit, London is looking to reinvent and solidify its position as one of the world’s premier financial hubs.

Earlier this week Chancellor Rishi Sunak told bankers and traders to prepare for what he named ‘Big Bang 2.0’, promising to reignite financial services ahead of regulatory talks with the European Union, and after a pandemic that has left the city looking and feeling like a ghost town.

While the Chancellor’s plans have so far been light on detail, former banker Lord Jitesh Gadhia says there are three areas where there could be radical change for the City of London.

First, the Government is reviewing how to make listing on the London Stock Exchange more attractive. Second, it is considering cutting back European regulation on how much capital banks and insurance firms must hold.

But perhaps most important is the fintech review being led by Ron Kalifa, former chief executive of Worldpay, which is looking at making the UK the best place to set up and grow a fintech business. The UK is a global leader in this space, with a list that includes companies such as Revolut, Monzo, Transferwise and Nutmeg.

But one company that could trump them all is Checkout, a little-known payments firm that has secured a whopping £11 billion valuation after raising £334 million in new funding this week, making it the fourth largest fintech company in the world – and the UK’s biggest.

Founded in 2012, with headquarters in London, it processes online payments for websites and customers including Deliveroo, fashion website The Hut Group and upmarket furniture seller Heal’s. Its most recent results showed annual revenues of £54 million.