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Five fast-growing UK fintech firms just got a direct line to the regulator. ClearScore, Modulr, Teya, Urban Jungle, and Zilch have all joined the Financial Conduct Authority’s Scale-Up Unit, a program built to give high-growth companies bespoke regulatory support as they push into new territory.
It’s not a rubber stamp. The Scale-Up Unit gives firms hands-on access to FCA staff who can help them work through governance questions, respond to policy shifts, and manage the kind of risk that tends to pile up fast when a company is scaling hard. The unit targets businesses regulated solely by the FCA — so firms with dual oversight from the Prudential Regulation Authority aren’t in this particular cohort. The idea is pretty straightforward: catch problems early, before a fast-moving firm outgrows its own controls.
What the FCA’s Scale-Up Unit Actually Does
Jessica Rusu, the FCA’s chief data information and innovation officer, has been clear about why the regulator cares about this. High-growth firms drive UK economic growth, and the FCA wants Britain to stay competitive as a place to start and scale financial services businesses. Supporting ambitious companies through regulatory complexity is part of how the FCA thinks it can keep that edge.
The unit doesn’t operate in isolation. It sits alongside a broader set of FCA programs — Innovation Pathways, the Pre-Application Support Service (PASS), and the Early and High Growth Oversight function. Together, those programs are meant to create a structured path for firms moving from scrappy startup to serious financial institution. Each stage has different needs, and the FCA has basically tried to build something for each of them.
Applications for the Scale-Up Unit pilot opened in May and closed June 22, 2026. The next cohort’s application window will open soon, though no specific date has been set yet. Earlier this year, the FCA named six firms — regulated jointly with the PRA — as the inaugural cohort. The five firms announced now are the second wave, and they’re FCA-only regulated.
Since the FCA launched its innovation services, it has worked with more than 1,000 innovative and growing firms. That’s a big number, and it probably reflects just how much the UK fintech sector has expanded over the past several years. Stablecoin adoption, embedded finance, buy-now-pay-later growth — the regulatory surface area has gotten a lot more complicated, and firms that move fast can find themselves in murky territory quickly.
Lessons from the Early and High Growth Oversight Pilot
Between July 2025 and March 2026, the FCA ran an Early and High Growth Oversight pilot with 15 firms across asset management, wealth management, and payments. The goal was to spot rapidly growing companies early and engage with them before their governance frameworks started lagging behind their growth trajectories. The FCA looked hard at how those firms were managing risk and whether their internal controls actually matched the pace they were moving at.
The insights from that pilot have been published. One clear takeaway: early investment in governance and risk management matters enormously. Firms that treat compliance as an afterthought tend to hit walls later — walls that are much harder and more expensive to deal with once the business is bigger.
That’s not a new idea, but it’s one the FCA seems intent on pushing more forcefully now.
Three of the five newly admitted firms — ClearScore, Modulr, and Zilch — are also part of the Unicorn Council for UK FinTech, a coalition set up by Innovate Finance that brings together fintech unicorn founders and CEOs. The council’s stated aim is accelerating growth across the sector. So these companies aren’t just accepting regulatory support; they’re also actively involved in shaping the broader fintech conversation at an industry level.
Teya and Urban Jungle round out the new cohort. No details in the announcement about their specific regulatory questions or growth challenges — that’s not really how the FCA tends to operate publicly. The support is bespoke, which means it’s tailored and, to a degree, confidential.
What Comes Next for the Cohort
The FCA’s next move is opening applications for the following Scale-Up Unit cohort. Timing is unclear. Firms that think they qualify — fast-growing, FCA-regulated only, hitting the kinds of governance and scaling challenges the unit is designed for — will presumably need to watch for that window.
And for the five firms already in, the work is just starting. Getting into the unit is one thing. Actually using the access to build tighter governance frameworks, get ahead of regulatory questions, and grow without stumbling — that’s the harder part.
ClearScore, Modulr, Teya, Urban Jungle, and Zilch now have a direct channel to do exactly that. The FCA has worked with more than 1,000 firms through its innovation services since launch.
Frequently Asked Questions
Which five firms joined the FCA Scale-Up Unit in the latest cohort?
ClearScore, Modulr, Teya, Urban Jungle, and Zilch joined the FCA’s Scale-Up Unit as the latest cohort of fast-growing firms receiving tailored regulatory support.
What did the FCA’s Early and High Growth Oversight pilot find?
The pilot, run between July 2025 and March 2026 with 15 firms across asset management, wealth management, and payments, found that early investment in governance and risk management is critical for firms scaling sustainably.
Why It Matters
The FCA's backing of these fintech firms underscores a growing recognition of the importance of regulatory guidance in fostering innovation within the financial sector. By providing tailored support, the Scale-Up Unit not only aids these companies in navigating complex compliance landscapes but also signals the regulator's commitment to adapting its framework to accommodate the evolving needs of the fintech space. This initiative could enhance the competitive landscape of UK fintech, potentially attracting further investment and encouraging similar regulatory approaches in other jurisdictions.
