Key facts
- The FCA will provide dedicated regulatory support to five UK scale-ups: Zilch, Clearscore, Modulr, Teya, and Urban Jungle.
- These firms will receive a dedicated FCA contact to help navigate regulatory processes and policy changes.
- The initiative aims to support business growth, new product launches, and adaptation to shifting regulatory rules.
- The FCA's Scale-up Unit is part of a broader commitment to foster UK economic growth and international competitiveness in financial services.
- The program does not imply reduced scrutiny, as the FCA is also tightening rules in areas like buy now, pay later.
The UK's Financial Conduct Authority (FCA) is providing enhanced regulatory support to five fast-growing financial technology firms, aiming to bolster Britain's position as a hub for financial innovation. Zilch, Clearscore, Modulr, Teya, and Urban Jungle have been selected as the inaugural cohort for the FCA's Scale-up Unit.
This new unit assigns each participating company a dedicated FCA contact. This point person will assist the scale-ups with navigating regulatory requirements, launching new products, and adapting to evolving rules as they expand their operations. The initiative reflects the FCA's secondary objective, adopted in 2023, to support UK growth and international competitiveness in the financial services sector.
Philip Belamant, CEO of Zilch, viewed the selection as validation of the company's achievements and expressed hope that Zilch could influence future regulatory development for growing businesses. Modulr CEO Myles Stephenson emphasized the importance of collaboration between industry and the FCA for continued investment and expansion in the UK, noting the company's focus on its UK operations despite global expansion.
The FCA acknowledges that rapid growth can introduce risks. Findings from an earlier pilot program involving 15 high-growth firms highlighted the necessity for these companies to strengthen their management and risk controls to keep pace with expansion. Teya, a payments business founded in 2019, exemplifies the scale companies can reach, serving over 75,000 businesses across nine European markets, including more than 30,000 in Britain, with approximately 1,500 employees.
This closer relationship with the FCA does not signal a relaxation of scrutiny. The watchdog is concurrently implementing stricter regulations in consumer finance areas, such as the buy now, pay later sector where Zilch is a significant player. Zilch has prior experience with the FCA, having participated in its regulatory sandbox for testing new financial products.