Regulators Mustn't Stand In The Way Of UK Fintechs Buying US Banks, Says Ex-Dep Prime Minister

• Regulators mustn't impede UK fintechs that want to buy US banks, says Yerbol Orynbayev, ex-Deputy Prime Minister of Kazakhstan, and now, President of TurmaFinTech.

• His intervention follows reports that UK fintechs are exploring buying US banks to secure American banking licenses and their place in the US market.

• For Orynbayev, the arrival of Revolut and Starling would only strengthen competition across the US banking sector, taking the fight to the 'Big Four', and driving digitalization at community banks. He urges regulators to fast-track their entrance before this window of M&A opportunity closes.

Miami, September 12 – Regulators mustn't stand in the way of UK fintechs buying US banks, says Yerbol Orynbayev, ex-Deputy Prime Minister of Kazakhstan, and now, President of TurmaFinTech. He argues UK-led buyouts will drive healthy competition and accelerate digitalization at community banks.

Orynbayev's intervention follows reports that UK fintechs are exploring buying US banks to secure American banking licenses. Though Trump’s administration has adopted a softer approach to M&A, regulators have previously deterred challenger banks from the US market, leading Monzo to withdraw its application for a license in 2021.

The TurmaFinTech President warns the current M&A-friendly window could be temporary, and regulators must fast-track these acquisitions to bring a much-needed “shake-up” to Wall Street. Currently, the 'Big Four' of US banking sweep up over 40% of the sector's profits, with no sign of slowing down. But players such as Revolut and Starling could challenge these banks' dominance, forcing them to improve their offerings in order to retain market share.

Welcoming UK fintechs would also spur technological innovation at community banks. These providers make up 97% of the sector, yet only two-fifths of them are leveraging AI and machine learning. For Orynbayev, small banks need to innovate to survive, and the presence of digital-first contenders could encourage them to increase their digitalization expenditure.

Yerbol Orynbayev, President of TurmaFinTech, said: “Regulators have traditionally been very protective of the US banking market, but they have a window of opportunity here. Now is the time to encourage competition, and UK fintechs’ latest license effort is an opportunity they mustn’t waste.

“The entrance of these challenger banks will expand and improve product offerings sector-wide, taking the fight to the industry giants who dominate the market. Ultimately, the presence of the likes of Revolut and Starling will benefit community banks, too – acting as a catalyst for digitalization, which, let's be frank, is sorely needed.

“Competition across the US banking landscape is stagnating; we need new contenders to spark change and give the sector a shake-up. To halt the decline, regulators must welcome UK fintechs with open arms.”

About Yerbol Orynbayev

Yerbol Orynbayev is President of TurmaFinTech, a fintech startup offering bespoke customer data platforms for community banks across the US. Prior to his consultancy career, Orynbayev served as the Deputy Prime Minister of Kazakhstan from 2007-2013 and Aide to the President on economic policy from 2013-2015. He also worked as the Governor of the World Bank on behalf of Kazakhstan and helped steer the nation out of the 2008 Financial Crisis. You can follow updates from him on LinkedIn and X.