Report maps route to the “Ubiquitech economy”

Comprehensive network coverage, digital identity, cyber security and better financial and digital education are crucial to the UK’s hopes of leading the evolving global economy, a high-profile report led by a Bayes Visiting  Professor has warned.

The report, From Fintech to Ubiquitech: Accelerating the wider UK digital economy, flags the challenges facing the UK in moving from a Fintech economy to a “Ubiquitech” economy – an era where technology and digital transactions are ubiquitous.

In her foreword, Dr Ruth Wandhöfer, a Bayes alumna and Visiting Professor, who led the working group behind the report, says: “Starting with the Fintech payments revolution, we have already seen how payments and money itself is transforming, bringing new opportunities and risks, and impacting consumers, businesses and the Government.”

“We need to ask ourselves, how can we truly embrace a digital economy with digital money and a plethora of digital services being bought and sold, if we still lack ubiquitous network coverage, the ability to access services and in some cases the financial and digital education necessary to do so?”

Dr Wandhöfer, an alumna of Bayes Business School, City, University of London where she is a Visiting Professor, said: “This is truly a ‘Carpe Diem moment’ for the UK as a global leader in Fintech and related sectors.”

Recommendations include:

• An extension of current initiatives around combatting fraud and financial crime, including putting in place the requirement for any system to reliably assert that the individuals, entities and assets are actually as claimed.
• Security standards for cyber security and strong customer authentication to be enhanced and effectively implemented and closely monitored by regulators– building on work already done in banking.
• Ubiquitous digital coverage and connectivity.
• The Government should encourage renewable energy powered networks and datacentres as part of NetZero targets.
• Regulatory bodies across the numerous industry verticals that Ubiquitech will touch should be encouraged to stay involved in trials of future technologies to speed up regulatory acceptance.
• Apprenticeship programmes and centres for lifelong learning are necessary to ensure that educational skills remain fit for purpose and timely. Industry co-operation and funding in the education programme should be encouraged.
• Education and training should be future focused so that society is appropriately skilled, for example, Web3 skillsets and education should be part of current training.

Noting the raft of recent legislation around digital technology, the report says the UK must now embrace opportunities in a way that maintains the country’s global leadership role – and that of the City of London. This means “moving from Fintech to Smart Data across all aspects of the economy”.

Insights for students and Bayes colleagues

Professor Barbara Casu, Deputy Dean and Director of the Centre for Banking Research (CBR) at Bayes, said: “We look forward to talking to Dr Wandhöfer about her conclusion that ‘Ubiquitech’ has the capacity to extend this commercial success into all other sectors of the economy, which will stimulate great discussions with both students and her academic colleagues at Bayes.”

Dr Zsofia Kraussl, Director of the MSc FinTech and Innovation at Bayes, said: “We aim to work closely with the industry in shaping the content of our innovative postgraduate offer. The report’s recommendations will help us ensure we provide our students with the relevant skillset.“The report is a road map through the fast-changing world in which our graduates will build their careers and we continue to work with the major financial institutions and Fintech companies based all around us in the City of London.”

The report includes recommendations for legislation, collaboration and investment, together with collaboration between Government, industry, academia and international partners.

Joining up the City of London

In his foreword, the Rt Hon. the Lord Mayor of London, Alderman Professor Michael Mainelli, welcomed the report as an important contribution towards building smart economic networks based on artificial intelligence, open data and shared ledgers.

He said: “Countries that embrace this next wave of efficiency and effectiveness will prosper by increasing productivity and trust, while reducing cost: creating a simpler, smoother, more secure system for customers and businesses that will make our lives easier and our money safer. By drawing on the City’s unique strengths and connections and collaborating across different groups, we can ensure London is at the vanguard of the fourth Industrial Revolution.”

The report is seen as complementing the Corporation’s recent Vision for Economic Growth – a roadmap to prosperity. Published last September, it focussed on the evolution of the financial and professional services sector.