Zilch, Clearscore among five UK scale-ups to get dedicated FCA support

The UK's Financial Conduct Authority (FCA) will provide additional regulatory assistance to five UK-based scale-ups as part of its efforts to alleviate the strain on rapidly expanding firms. Zilch, Clearscore, Modulr, Teya, and Urban Jungle have been chosen to join the FCA's Scale-up Unit, which assigns a dedicated FCA contact for each company to assist with inquiries as they expand. This support covers launching new products and adapting to changes in regulations as they occur.

Philip Belamant, co-founder and CEO of Zilch, sees the selection as acknowledgment of the company's achievements and an opportunity to help shape the regulation of growing businesses. The move aligns with the FCA's goal to enhance Britain's appeal for building and scaling financial firms while maintaining consumer protection.

The FCA, under the leadership of Jessica Rusu, has emphasized that high-growth firms are crucial to the economy and aims to keep Britain among the top destinations for establishing and scaling financial services companies. Six companies overseen jointly by the FCA and the Bank of England's Prudential Regulation Authority joined the Scale-up Unit in February, including Allica Bank, ClearBank, Monument, Nottingham Building Society, OakNorth, and Zopa.

While the closer relationship does not imply reduced scrutiny, the FCA is tightening rules in certain areas of consumer finance, such as buy now, pay later, where Zilch operates. The company has a history of engaging with the FCA, including participation in the regulatory sandbox, which permits businesses to test new financial products under regulatory oversight.

Modulr's CEO, Myles Stephenson, highlighted the importance of strong collaboration between industry and the FCA to encourage continued investment and expansion in Britain. He stated that while the company is also expanding into global markets like the US, its initial UK growth and investment were essential to its success.

The FCA acknowledges that rapid growth can pose risks, as evidenced by a pilot involving 15 high-growth firms, which found that businesses need to bolster management and risk controls early on to keep up with their expansion. Teya, a payments business operating in nine European markets, now serves over 30,000 businesses in Britain and employs around 1,500 people, demonstrating the scale at which companies can grow before entering the programme.

Since its inception in 2023, the FCA has supported over 1,000 growing businesses through various innovation programs.