Question to the HM Treasury:

To ask His Majesty's Government what assessment they have made of the impact of increased automation and AI-driven financial workflows on the fintech sector; and what policy measures they are considering to support the UK's competitiveness in the digital economy.

As set out in the Government’s Financial Services Growth and Competitiveness Strategy, the UK aims to be the world’s most technologically advanced global financial centre, and to remain a leading jurisdiction for Fintech firms to start-up, scale and list.

The UK has a long history as a powerhouse of financial services innovation. The Financial Services Strategy set out a comprehensive package of reforms to maintain the UK’s global leadership in Fintech, and the sector attracted $3.6 billion of investment in 2025 - second only to the US. This drive to deliver innovation also includes the safe adoption of artificial intelligence (AI) by the financial services sector, which the Government believes is a major strategic opportunity, with the potential to power growth across the UK.

The Digital and Technology sector has also been identified as one of the key growth driving sectors for the UK, as part of our Industrial Strategy. The Government’s 2025 AI Opportunities Action Plan sets out our strategy on AI in particular, including putting in place the foundations to capitalise on the opportunities of AI. In January, a year after its publication, the Government announced that 75% of the recommendations committed to have been actioned, including developing AI talent through the £187 million tech first package and the designation of five AI Growth Zones across the UK, with streamlined planning and energy access.

The Government also recognises the huge productivity and growth opportunity that the adoption of digital technology offers the wider economy. The Technology Adoption Review focussed on adoption in the Industrial Strategy sectors and was published in June 2025, while DBT established the Digital Adoption Taskforce, working with industry members to identify the current needs of SMEs in their digital adoption journeys. Their final report was published in July 2025 with government response included in the Small Business Strategy. The Government is responding to these recommendations, including progressing with mandating e-invoicing and expanding successful firm level programmes such as Bridge AI.