Hammond announces major payments review

Philip Hammond has announced a Treasury-led review of the UK’s evolving payments landscape.

The chancellor used his annual Mansion House speech last night - widely regarded to be his last - to announce an industry-wide examination of the impact of technology and changing financial regulation on the UK’s banking sector, as the country prepares to leave the EU.

Referencing the rising number of digital payments firms that have sprung up as consumer habits shift online, Hammond said the review would bring together “policymakers and regulators to make sure that our regulation and infrastructure keeps pace with the dizzying array of new payments models”.

The chancellor warned that in order for the UK to retain its status as a leading financial services centre, its model “must evolve and adapt to a changing world”.

He also warned that the next prime minister would need to complete the post-crash recovery process which had been put in place by previous governments, and urged the banking industry not to allow reform and innovation in financial services to be “overshadowed by Brexit”.

“London’s position as the premier global financial services hub depends on our ability to capture a share of these booming markets,” he said. “And it depends, too, on our ability to integrate the technologies of the future into our mainstream financial services.

Hammond added: “In short, to remain a dominant player we in the UK must do what London’s markets have always done: evolve. Refuse to stand still; reject the notion of the status quo; embrace change, disruption and challenge. Adopt, adapt and synergise enthusiastically and energetically. Radiate the energy and dynamism which distinguishes a real hub of innovation from its sterile imitators.”

Hammond added that as the first wave of FinTech innovation matures, with the likes of challenger banks such as Monzo and Starling and payments giants such as Klarna and PayPal, it was incumbent on the industry to “evolve our policy and regulation too, to make sure it remains fit for purpose”.

He said the Treasury would collaborate with the Financial Conduct Authority to use the government’s Smart Data Functioni in order to build upon the progress made by Open Banking, with a new agenda for Open Finance, in order to give small businesses and consumers “power over all of their financial data, so that SMEs will have access to financial tools hitherto only accessible to larger corporates”.

    Share Story:

Recent Stories


FREE E-NEWS SIGN UP

Subscribe to our newsletter to receive breaking news and other industry announcements by email.

  Please tick here to confirm you are happy to receive third party promotions from carefully selected partners.


NEW BUILD IN FOCUS - NEW EPISODE OF THE MORTGAGE INSIDER PODCAST, OUT NOW
Figures from the National House-Building Council saw Q1 2025 register a 36% increase in new homes built across the UK compared with the same period last year, representing a striking development for the first-time buyer market. But with the higher cost of building, ongoing planning challenges and new and changing regulations, how sustainable is this growth? And what does it mean for brokers?

The role of the bridging market and technology usage in the industry
Content editor, Dan McGrath, sat down with chief operating officer at Black & White Bridging, Damien Druce, and head of development finance at Empire Global Finance, Pete Williams, to explore the role of the bridging sector, the role of AI across the industry and how the property market has fared in the Labour Government’s first year in office.

Does the North-South divide still exist in the UK housing market?
What do the most expensive parts of the country reveal about shifting demand? And why is the Manchester housing market now outperforming many southern counterparts?



In this episode of the Barclays Mortgage Insider Podcast, host Phil Spencer is joined by Lucian Cook, Head of Research at Savills, and Ross Jones, founder of Home Financial and Evolve Commercial Finance, to explore how regional trends are redefining the UK housing, mortgage and buy-to-let markets.

The new episode of The Mortgage Insider podcast, out now
Regional housing markets now matter more than ever. While London and the Southeast still tend to dominate the headlines from a house price and affordability perspective, much of the growth in rental yields and buyer demand is coming from other parts of the UK.

In this episode of the Barclays Mortgage Insider Podcast, host Phil Spencer is joined by Lucian Cook, Head of Research at Savills, and Ross Jones, founder of Home Financial and Evolve Commercial Finance.