New initiative aims to streamline regulation for growing banks, insurers and fintechs
Financial services companies in the UK will soon have access to a dedicated unit designed to help them expand, invest, and create skilled employment, as the government intensifies its focus on economic growth.
Chancellor Rachel Reeves, addressing regulators and business leaders in Leeds on Friday, revealed that the new Scale-up Unit will offer tailored assistance to banks and insurers seeking to navigate regulatory requirements. The initiative is part of the government’s broader industrial strategy to remove obstacles that hinder business expansion and investment.
The Scale-up Unit, to be jointly managed by the Financial Conduct Authority (FCA) and the Prudential Regulation Authority (PRA), will serve as a single point of contact for scaling financial services firms. The unit is intended to provide prompt regulatory guidance and expert advice, enabling firms to concentrate on product development, recruitment, and attracting investment to local areas.
“I am proud to be back in Leeds, home to the second largest financial services centre in the UK, to launch our new Scale-up Unit – which will super charge the growth of some of our most innovative companies,” Reeves said.
“The vast number of rules make life complicated for these businesses. We are helping them cut through the noise, to grow and innovate. That’s how we will boost jobs, boost growth, and build an economy that works for, and rewards, working people.”
According to official figures, over £110 billion has been committed by international financial firms in the past month. Notably, Revolut has announced a £3 billion investment over five years, including the opening of new headquarters in Canary Wharf and the creation of 1,000 jobs.
“We’ve committed in our strategy to supporting growth and ensuring the UK remains the premier destination for financial firms to start up and grow,” said Nikhil Rathi, chief executive of the Financial Conduct Authority. “By joining up with the PRA, our new Scale-up Unit will provide firms with tailored, hands-on support to help them scale and grow faster.”
Sam Woods, chief executive of the Prudential Regulation Authority, added: “This new unit will encourage a dynamic, competitive landscape in financial services by offering tailored support to firms on how to navigate regulation while scaling up.”
Initially, the Scale-up Unit will focus on fast-growing deposit-takers and insurers, with plans to expand its services to other financial services firms, including fintechs, in early 2026.
The UK currently hosts more than 3,000 fintech companies, employing over 75,000 people nationwide, and attracting more than US$3.6 billion (£2.7 billion) in investment in 2024. Both the Scale-up Unit and related initiatives form part of the government’s wider Plan for Change, which seeks to accelerate economic growth and job creation.
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