Bank of England unveils fintech innovators in new regulatory unit
The Bank of England has unveiled the initial selection of UK fintech innovators set to fall under the supervision of its newly established ‘Scale-Up’ regulatory unit, reports BritPanorama.
Among those admitted to the inaugural group are small business lenders OakNorth and Allica Bank – the latter recognised by Deloitte as the fastest-growing fintech in history. Both have bases in Manchester and London.
Joining them are neobank unicorn Zopa, banking-as-a-service platform Clearbank, and Monument Bank, which caters to the mass-affluent market and has been the subject of speculation regarding a potential US stock market flotation.
Completing the first intake is Nottingham Building Society, an outspoken opponent of the government’s cash ISA overhaul, which described the Budget’s reduction of the allowance to £12,000 as “deeply disappointing.”
The Scale-Up unit has been championed by the Treasury as a means to “supercharge” the expansion of cutting-edge fintech companies and represents a collaborative initiative between the Financial Conduct Authority (FCA) and the Prudential Regulation Authority (PRA).
The initiative was initially previewed at Rachel Reeves’ Financial Services Growth and Competitiveness Summit, where the Chancellor sought to introduce measures bolstering the fintech industry.
Richard Davies, chief executive of Allica Bank, stated: “Done well, the Scale-Up Unit can support the government’s objective to make the UK the location of choice for financial services firms to invest, innovate and grow.”
ClearBank’s chief executive Mark Fairless added: “This new Unit will help ClearBank to accelerate progress on critical initiatives that support our clients and the wider financial services sector in the UK.”
Regulation has continued to be a major concern for Britain’s innovators, with the fintech trade body Innovate Finance criticising the banking watchdog, the PRA, last year over “logic-defying” rules.
A report from the organisation claimed the Prudential Regulation Authority’s (PRA) “excessive” requirements have created an uneven playing field for UK challenger banks, placing heavy burdens on them.
Reeves has been cultivating relationships with leading fintech companies over the past year in an effort to encourage fintech flotations. Senior figures from ClearBank, Atom, Revolut and Zilch met with the Chancellor last July to push for tax breaks and cautioned the government that it could lose them to international competitors.
Recent data from Innovate Finance revealed the UK strengthened its position as Europe’s fintech leader over the past year but faced mounting pressure from rapidly expanding rivals increasing their clout.
The UK secured $3.6bn (£2.7bn) in investment last year, drawing in more than the following five European nations combined but only narrowly surpassing India at $3.4bn.
A spike in investment during the second half of 2025 enabled UK fintech to retain its runner-up position for overall investment.
The establishment of the Scale-Up unit marks a significant initiative by the Bank of England, reflecting a broader effort to regulate and support the UK’s dynamic fintech sector. As competition intensifies, particularly from international counterparts, the government’s proactive measures may prove critical in retaining the UK’s competitive edge in financial services.
