UK Technology Secretary Peter Kyle announced plans last month for the Regulatory Innovation Office (RIO) to work with the Digital Regulation Cooperation Forum to cut red tape, and support fintech innovation. The policy is designed, if the government is to be believed, to fuel what it terms its Plan for Change.
The RIO push includes backing for new tech to help innovators use AI to better navigate complex digital regulations, from fintech to consumer services. And according to Kyle, the UK’s fintech sector will be supported through a new one-stop shop to access all the guidance they need in one place.
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The Secretary of State has acknowledged that the UK’s world-leading fintech sector attracted $3.6bn of investment last year. Opinions may vary across the sector as regards the overall track record of the Labour government to date to support growth. But it is not in dispute that if the government gets this right, there is scope for its Plan for Change to unlock innovation-led growth across the country.
As Stiven Muccioli, CEO at BaaS fintech BKN301 tells RBI editor Douglas Blakey, there is also much work for the banks themselves to do when it comes to optimising their innovation strategies.
RBI: Why do you think banks should re-examine how they approach innovation? Do you think some banks still get it wrong?
Stiven Muccioli, CEO at BKN301:
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By GlobalDataMost banks still treat innovation like a side experiment, something for a separate team, not part of the core business. But today, customers expect the same user experience from a bank as they do from a tech platform. If you can’t deliver fast, seamless, digital-first services, you’re out of the game.
The problem isn’t just technology, it’s mindset. Fintechs build for speed and flexibility from day one. Banks are still slowed down by internal structures and old ways of thinking. Innovation can’t be layered on top of outdated models. It needs to be embedded from the ground up, with systems that can evolve fast and respond to the market in real time.
RBI: In the UK, the Government claims it will slash red tape and modernise outdated rules. Is it credible that the government can boost fintech growth with its proposed policy change?
Stiven Muccioli:
Regulation is one of the biggest blockers for fintech growth, especially for early-stage players. If the UK is serious about making the system easier to navigate, that’s a big opportunity.
The creation of the Regulatory Innovation Office and the Digital Regulation Cooperation Forum could help cut the bureaucracy that slows down innovation. But if the goal is real impact, the effort needs to go beyond paperwork. Incentives like tax breaks, targeted funding, and focused training in areas like AI, data, and cybersecurity would make a real difference. The talent is already in the UK. The system just needs to stop slowing it down.
RBI: Many innovative banks still operate with significant legacy infrastructure. Do you think legacy systems are still a major barrier to progress in such organisations?
Stiven Muccioli:
Yes, legacy systems are still a huge drag. They might be mission-critical, but they slow everything down. These banks may want to move fast, but structurally, they can’t. Not without changing the way they approach innovation.
That doesn’t mean they need to start from scratch. The smarter way is to build around the legacy, not fight it. With modular, API-driven platforms, you can plug in new services, test fast, scale what works, and avoid the chaos of a full rebuild.
At BKN301, we work with both types of institutions, those starting fresh and those tied to legacy systems. The difference is in approach: those who build with flexibility in mind can actually keep up.
RBI: You argue that BaaS gives banks a way to test and launch new services in months, not years. Can you summarise some of the benefits? Any outstanding examples come to mind?
Stiven Muccioli:
BaaS gives financial institutions what they’ve always needed but never had: speed and scalability, without the overhead of legacy development.
With a single, cloud-native architecture, banks can customise their stack and integrate with existing infrastructure. That means faster development, fewer delays, and real agility. On the fintech side, it’s a shortcut to launching services without having to build the compliance and infrastructure layers from scratch.
A great example is Damen Cash in Egypt. They used our BaaS platform to go live quickly with a full-featured digital wallet, tokenised cards, bill payments, localised UX, all built on a modular system that can grow with them. That’s what BaaS should be: a tool for fast, localised, high-impact execution.
RBI: And something on the BKN301 value proposition for any of our readers who do not know your organisation?
Stiven Muccioli:
We’re building the infrastructure layer for financial services, focused on markets that traditional players have ignored for too long.
Our BaaS Orchestrator is modular, cloud-native, and API-first. It integrates with legacy systems without needing to rip everything apart. We combine core banking, payments, card issuing, and open banking into one stack that’s ready to move.
What makes us different is our ability to adapt. We don’t sell off-the-shelf products. We work on the ground in high-growth markets, especially across Europe and MENA, to build tailored solutions that solve real, local problems. For us, BaaS isn’t a buzzword. It’s infrastructure that works, where it’s actually needed.
