The announcement was made at the International Fintech Conference in London, alongside UK Chancellor of the Exchequer the Rt Hon Philip Hammond. With the announcement, the UK and Australian governments will strengthen ties to improve global fintech opportunities for firms.
The UK is a global leader in the fintech world, and according to this announcement, is generating £7 billion each year and employing over 61,000 people. In Australia, 2017 saw approximately US$656 million investment in fintech firms. The Australian government is hoping that further collaboration between the UK and Australia will help both their economies by working to develop fintechs.
But what will the Fintech Bridge involve?
Collaboration on fintech trends, policy issues and regulation
An increase in innovation will impact policy and regulation, meaning more regulations will be required as the industry adjusts to new technologies and capabilities. As new fintechs emerge in both countries, identifying trends in the industry to suit the need for regulation will be a key part of the UK-Australia Fintech Bridge.
Regulatory bodies, government and fintech firms from the UK and Australia will share their expertise on policy and regulation issues to address problems that might arise within the industry. Regulators in both countries will collaborate, such as making licensing between the two countries much faster. When a fintech firm is licensed in one country, they will now experience quicker processing, and will become licensed in the other country much faster. By having quicker processing for licensing, they are showing a global outlook for fintech innovation, hoping to move the fintech industry in Australia and the UK forward.
Support for fintechs looking to expand overseas
The announcement also included a guide for supporting fintechs who are looking to enter either the UK or Australian market. This will involve networking opportunities, and introductions to investors and to teams from banks and financial institutions looking to partner with a fintech firm. This will provide a significant growth opportunity for the fintech industry in both countries.
Fintech firms hoping to enter the Australian market will be given promotion opportunities and will be supported by Trade and Investment Authorities, helping them to access innovation centres and programs.
Likewise, firms hoping to enter the UK market will be introduced to the UK Fintech network through events promoting Fintech Bridge activities. They will also be given Trade and Investment support for innovation programs. They will be provided with the opportunity to enter an annual Fintech competition, with Australian fintech firms given the opportunity to win a business trip to the UK for the purpose of business development and expansion into the UK.
You can read the Australian Treasury’s full media release here.