Does Financial regulation inhibit innovation?

The financial sector in the UK contributes greatly to the economy and is the largest in London. Innovation is important for financial businesses to stay competitive in the market. This can be driven by technology, which has led to innovations like ATMs in banking. Open innovation competitions, like the UBS Future of Finance Challenge 2019, allow start-ups and growing companies to showcase their solutions. Financial innovation can be classified into institution, product, and process innovation. However, a good regulatory environment is necessary to ensure innovation can thrive without negative consequences.