The past few months have brought into sharp focus the deeply embedded role technology now plays in our lives. As half the world went into lockdown, it was technology that stopped economies and societies from grinding to a complete halt. It has enabled home working, learning, shopping, and entertainment, and driven innovation in healthcare and life sciences that have played a crucial role in fighting Covid-19. Online video services have enabled doctors to treat patients via remote consultations, start-ups to pitch to investors they have never met, and grandparents to enjoy precious contact with loved ones. Quite simply, the experience of lockdown would have been fundamentally different fifteen years ago, before smartphones, cloud computing, and A.I.

Many of these trends will outlast the pandemic, which has sped up changes that were already in motion. These include a move towards digital payments, and more flexibility in the world of work as 9 to 5 attendance in an office becomes outdated in an always-connected world. We have seen how quickly digital adoption can take place when necessary, giving us all a glimpse at the “fusion future” and the possibilities this presents.

The fusion future

Technology is no longer a sector in itself, but rather all-pervasive throughout every aspect of our lives. If we were to visualise this transition, you would have technology along the horizontal axis, starting from the first programmable computers of the 1940s, through mainframes and microprocessors, to AI and quantum, and ultimately singularity. Along the vertical axis you would have the incumbent sectors – such as financial services, healthcare, education, and consumer industries. It is through fusing two together that you create something new, as technology is causing all industries to evolve much faster than ever before.

Of course, for some sectors this is an easier transition than others. Heavily-regulated industries in particular, governed by the rule of law, will go through this process last. The UK’s banking sector has seen a number of catalysts accelerating its digital transformation over the past twelve years, including repercussions of the Global Financial Crisis in 2008, the advent of Open Banking and APIs, 36 new banking licences granted, and now Covid-19.

The UK’s fourth industrial revolution

As we enter a new chapter in human development, the UK’s role in the fourth industrial revolution will be key to our ability to compete post-Brexit. Not large enough just to focus solely on our domestic market, our ability to combine a number of competitive advantages including light-touch regulation, democracy, common language, and timezones, together with a rich heritage in building knowledge-intensive businesses and world-class universities, all positions the UK to play a pivotal role.

The central role played by the UK in the last three industrial revolutions has been driven in part by our rule of law and the corporate governance standards set by the City of London. We now have the opportunity to set new digital standards, almost like a KYTE mark of quality, through working collaboratively around the world. In particular, we can embed fusion services into our trade and aid commitment of £40 billion per annum, to re-aqueduct that money into having the most impact.

A proven track record in innovation

The UK’s global ambition in fintech demonstrates the importance of this reputation for regulatory rigour. For example, the creation of the FCA’s Project Innovate and subsequent regulatory ‘sandbox’ created a supportive environment in which successful fintech unicorns could be born. The sandbox has enabled these businesses to test both their technology and business model within regulatory protection and guidance, without which they would never have been able to succeed. In fact, the success of the FCA’s sandbox regime can be seen in the fact that there are nearly a hundred regulatory bodies globally currently in conversations with the FCA to develop their own frameworks.

And we see lots of great examples of UK fusion businesses being exported around the world as best-in-class. For example, Vocalink, built in Hertfordshire and subsequently acquired by Mastercard, is the world’s fastest payment company, with its technology now used in 23 countries worldwide. Another example is ARM Holdings, a global semiconductor and software design company developed in Cambridge and now owned by Softbank. And there are many other examples in govtech, agritech, and cybersecurity to name a few.