Trade body Innovate Finance's "Unicorn Council", which includes the CEOs of Monzo, Revolut's UK arm and ClearBank, set out policy recommendations on Monday that it said would help the UK maintain its position as a fintech hub.

Global venture capital investments fell to a near five-year low in the first three months of 2024, according to data from PitchBook, as high interest rates dampened risk appetite.

Fintech companies in the UK say there is not enough investment coming from UK-based investors in particular.

"There is a well-documented problem with capital supply in both the UK listed markets and private Growth Capital," the group's statement said.

"All of the investment across our biggest fintechs (is) all overseas. Where are the UK pension funds? Why isn't that growth actually going into the pockets of the UK?" added ClearBank CEO Charles McManus, speaking at the Innovate Finance Global Summit (IFGS) conference held in London on Monday.

The group's recommendations include abolishing stamp duty - a form of tax - and implementing "existing plans to address these capital gaps", the statement said, without giving details.

The government should also expand the scope of business asset disposal relief - a scheme which reduces capital gains tax - and provide "a VAT-rebate scheme" for newer fintechs, the group said in its statement.

Despite the slowdown in fundraising globally, some UK fintechs are raising fresh cash.

Digital bank Monzo raised 340 million pounds at a 4 billion pound valuation, the company said last month, in a round led by CapitalG, a fund owned by Google-owner Alphabet.

Britain's fintech sector has traditionally ranked third for fundraising volumes after the United States and China. The UK government has said it is committed to supporting the industry and last year backed the launch of The Centre for Finance, Innovation and Technology, to help remove barriers to the sector's expansion and boost job creation.

(Reporting by Elizabeth Howcroft; Editing by Tommy Reggiori Wilkes and Andrew Cawthorne)

By Elizabeth Howcroft