U.K’s Financial Innovation Partners To Spur Fintech Innovations Such As Blockchain

The U.K’s Financial Conduct Authority (FCA) has inked a partnership with 11 other regulatory authorities across Europe, the Far East and the U.S. The regulatory bodies have agreed to form a Global Financial Innovation Network (GFIN), tasked with the responsibility of studying emerging fintech innovations.

The alliance is to provide a platform whereby regulators around the world will be able to interact with fintech firms in a bid to spur innovations across various industries. Some of the emerging fintech innovations that the alliance will maintain a keen watch on include Blockchain, the underlying technology powering cryptocurrencies.

In addition to blockchain technology, the alliance will also consult on technologies such as Artificial Intelligence and machine learning that continue to impact various industries. The coalition will also seek to study and come up with regulations for securities as well as Initial Coin Offerings that are becoming increasingly popular.

According to FCA executive director of strategy, Christopher Woolard, the creation of GFIN is a step in the right direction for agencies looking to spur development of fintech innovations, in a bid to harness their benefits.

The network should also result in the creation of a global sandbox whereby regulators and innovators around the world can congregate to share experiences and approaches for bettering various operations as well as cross-border dealings.   The network’s transparency and fairness should end up accelerating the rate at which new products and ideas hit the market.

“The establishment of the GFIN can help share the experiences and knowledge from across different markets, while also providing a platform for innovative firms wishing to scale their propositions via testing in multiple countries,” said Mr. Woolward.

The Global Financial Innovation won’t be restricted to ideas and solution from the 11 members. The group is also open to ideas from other regulators as well as organizations. The group is currently open to feedback on the mission statement until October.

This is not the first time that the FCA has teamed up with other regulators and agencies in a bid to spur FinTech innovation. Early last year, it hosted a sandbox of nine blockchain-focused companies where ideas were shared on the emerging technology.  Early this year a number of U.S and U.K agencies partnered with the FCA on FinTech innovation as well.

FCA is trying to position the UK as a leader in emerging technologies such as Blockchain thus the increased partnerships and interactions with various authorities’, startups and agencies.