The Bank of England has officially revealed the first cohort of UK fintech companies selected for its newly launched 'Scale-Up' regulatory unit, a move designed to fast-track the growth of innovative financial technology firms. This initiative, championed by the Treasury, aims to supercharge the expansion of cutting-edge fintechs and represents a collaborative effort between the Financial Conduct Authority (FCA) and the Prudential Regulation Authority (PRA).
Inaugural Cohort Features Leading Fintech Innovators
The initial selection includes a diverse range of fintech players. Among them are small business lenders OakNorth and Allica Bank, with the latter recognised by Deloitte as the fastest-growing fintech in history. Both companies maintain bases in Manchester and London, highlighting the regional spread of fintech talent across the UK.
Joining these lenders are neobank unicorn Zopa, which expanded its operations to Manchester last year, and banking-as-a-service platform Clearbank. Also included is Monument Bank, which serves 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 critic of the government's recent cash Isa overhaul, which described the Budget's reduction of the allowance to £12,000 as deeply disappointing.
Government Backing and Industry Response
The Scale-Up unit was initially previewed at Chancellor Rachel Reeves' Financial Services Growth and Competitiveness Summit, where she introduced measures to bolster the fintech industry. Reeves has been actively cultivating relationships with leading fintech companies over the past year in an effort to encourage fintech flotations and maintain the UK's competitive edge.
Richard Davies, chief executive of Allica Bank, commented: "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." Similarly, ClearBank's chief executive Mark Fairless stated: "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."
Addressing Regulatory Challenges
Regulation remains a significant concern for Britain's fintech innovators. The fintech trade body Innovate Finance has previously criticised the Prudential Regulation Authority (PRA) over what it described as logic-defying rules. A report from the organisation claimed the PRA's excessive requirements have created an uneven playing field for UK challenger banks, imposing heavy burdens on them.
Senior figures from ClearBank, Atom, Revolut and Zilch met with Chancellor Reeves last July to push for tax breaks and warned that the government could lose these companies to international competitors if regulatory hurdles persist.
UK's Fintech Investment Landscape
Recent data from Innovate Finance shows that the UK strengthened its position as Europe's fintech leader over the past year, though it faces mounting pressure from rapidly expanding rivals. 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 globally, underscoring the sector's resilience and growth potential. The new Scale-Up unit is expected to further enhance this trajectory by providing targeted regulatory support to high-growth firms.
