Finance
Britain unveils fast-track licensing to boost fintech growth
Published by Global Banking and Finance Review
Posted on December 4, 2025
2 min readLast updated: January 20, 2026
Global Banking and Finance Review
Company
Published by Global Banking and Finance Review
Posted on December 4, 2025
2 min readLast updated: January 20, 2026
Britain's new fast-track licensing allows fintech startups to operate provisionally, aiming to boost growth by reducing red tape.
By Phoebe Seers
LONDON, Dec 4 (Reuters) - Britain will launch a fast-track licensing regime for financial services startups allowing them to get up and running while they seek full authorisation, the finance ministry said on Thursday, part of a wider drive to cut red tape and boost economic growth.
Under the new system, firms meeting “robust” entry criteria will be able to operate provisionally and carry out some regulated activities for up to 18 months, subject to safeguards, as they complete the full licensing process.
“Too many promising firms have told us their growth is being hampered by the time it takes to secure full authorisation,” financial services minister Lucy Rigby said. “This new regime will help high-potential start-ups and scale-ups trade and grow sooner."
Britain's Financial Conduct Authority has faced criticism from fintechs that its approval process is too lengthy and costly, choking investment and slowing expansion.
The government has also asked the FCA to ease the regulatory burden.
The FCA did not immediately respond to a request for comment.
The finance ministry did not say what the entry criteria would be, or when the regime will take effect.
(Reporting by Phoebe Seers. Editing by Mark Potter)
Fintech, or financial technology, refers to the integration of technology into offerings by financial services companies to improve their use of financial services. It encompasses a wide range of applications, including mobile banking, online payment systems, and blockchain technology.
A licensing regime is a set of rules and regulations that govern the issuance of licenses to businesses, allowing them to operate legally within a specific industry. This often includes meeting certain criteria and undergoing a review process.
Full authorization is the process by which a financial services firm receives official approval from regulatory authorities to operate and provide services. This typically involves meeting stringent regulatory requirements and demonstrating compliance with industry standards.
The Financial Conduct Authority (FCA) is a regulatory body in the UK responsible for overseeing financial markets and firms to ensure they operate fairly and transparently. The FCA aims to protect consumers and maintain the integrity of the financial system.
Regulated activities are specific financial services or products that require authorization from a regulatory body, such as the FCA in the UK. These activities include banking, insurance, investment services, and financial advice.
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