UK WEN Expert Panel Event

Overview 

The UK Women in Economics Network (UK WEN) Expert Panel events showcase leading women economists sharing their expertise on topical economic and policy issues, while raising the profile of women in the profession. This event brought together policymakers, economists, academics and industry experts to explore how regulation can support innovation in financial services. Hosted by the Financial Conduct Authority (FCA), the discussion examined whether regulation and markets should be viewed as competing forces or as complementary mechanisms for promoting innovation, competition and consumer protection. 

The event successfully showcased the expertise of leading women economists while fostering thoughtful discussion and collaboration on one of the most important policy challenges facing the financial services sector and the rest of the UK economy. 

Setting the Scene 

Sarah Pritchard, Deputy Chief Executive of the FCA, opened the event by outlining the FCA’s 2025–30 strategy, which places growth and innovation alongside consumer protection, tackling financial crime and becoming a smarter regulator. She argued that effective regulation and market forces can work together rather than in opposition. 

Misa Tanaka, Chair of UK WEN, highlighted the importance of diversity in economics to improve policymaking, while Kate Collyer, Chief Economist at the FCA, described the UK’s position as a global fintech leader. She emphasised the challenge of encouraging innovation while maintaining trust and safety, highlighting initiatives such as the FCA’s regulatory sandboxes that allow firms to test innovative products in a controlled environment. 

Key Themes 

A central theme throughout the discussion was that well-designed regulation can stimulate innovation by addressing market failures rather than restricting market activity. 

Martina Prosperetti (RBB Economics) argued that innovation thrives in competitive markets but may be hindered by information asymmetries, consumer inertia and market power. Using Open Banking as an example, she demonstrated how targeted regulation can increase competition, improve consumer choice and create opportunities for innovation. 

Jessica Barnaby (FCA) built on this by discussing Open Finance, arguing that regulators should lower barriers to entry, provide clear and predictable regulatory frameworks, and work collaboratively with industry to support innovation without prescribing outcomes. 

Udichibarna Bose (University of Essex) presented evidence that appropriately designed regulation can encourage more radical innovation while reducing systemic risks. She highlighted the success of regulatory sandboxes in helping firms attract investment and noted that these initiatives are most effective when combined with broader support for innovation. 

Providing an international perspective, Eimear Daly (NatWest) discussed China’s experience, suggesting that strategic government intervention can accelerate innovation when aligned with wider industrial policy, while recognising that such approaches reflect different political and institutional contexts. 

Emerging Challenges 

The panel discussed several emerging issues, particularly cryptoassets and artificial intelligence (AI). Speakers agreed that regulation should provide consumer protection and market confidence without unnecessarily constraining innovation. As AI develops rapidly, panellists stressed the need for adaptive regulation, greater regulatory expertise and closer collaboration between regulators and industry. 

The discussion also explored international competitiveness, with broad agreement that the UK should avoid both excessive regulation and a “race to the bottom” with deregulation. Instead, proportionate, evidence-based regulation was seen as essential for supporting innovation while maintaining trust and financial stability. 

Conclusion 

The event highlighted broad consensus that regulation and innovation should be viewed as complementary rather than competing forces. Effective regulation can address market failures, build consumer confidence and create the certainty needed for innovation to flourish. While markets remain the primary drivers of innovation, regulators play an important role in creating the conditions that allow innovation to develop safely, competitively and for the benefit of consumers and the wider economy. 

Looking Ahead 

The discussion continued beyond the panel during a vibrant and engaging networking session, where attendees had the opportunity to exchange ideas, continue conversations with the speakers, and build new professional connections.