An alliance between fintech organizations and the UK Financial Conduct Authority (FCA) was announced this week in hopes of improving collaboration between 11 financial regulators and companies as stated in the official press release from the London-based consumer protection agency.
This Global Financial Innovation Network (GFIN) will seek “to provide a more efficient way for innovative firms to interact with regulators, helping them navigate between countries as they look to scale new ideas,” the statement read. “It will also create a new framework for co-operation between financial services regulators on innovation related topics, sharing different experiences and approaches.”
There are three functions of this new alliance. The network’s main functions will be to act as regulators to share experience and insight on emerging technology, to provide a panel of discussion and “cross-border” solutions, and to help companies expand into international platforms.
Emerging technology has created discourse throughout the financial tech industry with the rising popularity of blockchain, big data, and machine learning to name a few trending talking points. Establishing partnerships with organizations that seek to find new, digital solutions to the technologically growing landscape seems to be the likely solution businesses want to stay relevant.
“The pace of technological change, including the development of emerging technologies and business models in financial services, requires regulatory authorities to adapt to this new landscape and devise new ways of cooperating,” reads a GFIN consultation document.
Here at Elevant Capital LLC, we will continue to be on the lookout to see how this consultation will affect innovations in fintech for businesses and financial service consumers. To stay updated, follow our blog and social media channels. You can also download the full August 2018 consultation document here.