The UK and the Republic of Korea have partnered to forge a partnership aimed at easing investment in the fintech sector, according to a statement issued by the UK Treasury.
The fintech bridge, which will enable the regulators to share information about financial services innovations including emerging trends and regulatory issues, has regulatory approval from the UK’s Financial Conduct Authority (FCA) and the Korean Financial Services Commission (FSC).
Chancellor of the Exchequer Philip Hammond commented: “The newly established FinTech bridge between the UK and the Republic of Korea is an important step for one of this country’s most exciting industries. The government is determined to help the UK FinTech sector to innovate and grow and to ensure that Britain remains the location of choice for FinTech start-ups.”
By strengthening links between the regulators and governments, the fintech bridge is expected to reduce the barriers to entry in a new jurisdiction and further encourage innovation in both countries’ financial services sectors. It will also make it easier for fintech firms in the UK and the Republic of Korea to scale up internationally.
The fintech bridge is part of the UK government’s commitment to support the fintech sector as it continues to grow as well as creating a positive environment for fintech firms to thrive in. The first ever fintech bridge with Singapore was signed in May.
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Figures show that last year the UK fintech sector employed over 60,000 people and generated £6.6 billion in revenue. However, the results of the UK’s recent Brexit vote has caused concerns that startup firms will relocate. Financial firms rely on the EU’s passporting system, allowing them to sell their services across the bloc while being registered and regulated just in the UK.
The sector has an important role to play in driving innovation in financial services by promoting the use of technology and improving consumers’ experiences.
For the Republic of Korea the fintech bridge supports the country’s efforts to create a fintech ecosystem that fully capitalises on Korea’s high tech and IT expertise. The bridge with the UK will also facilitate Korean start-ups’ entry into the global market place.
Chairman Yim Jong-yong of the FSC said: “Although Korea is a relative newcomer to FinTech, we have been focusing on developing a regulatory environment that supports rapid growth of the sector. The Fintech bridge with the UK, which is a pioneer of the industry, will enable Korea to more easily identify and adopt regulatory best practice. It is another step in strengthening the strong financial relationship between Korea and the UK.”