Britain and Australian Sign Fintech Pact

April 6, 2016         By: Ryan Kennedy

Australia and the United Kingdom, two major players in the financial technology industry, signed a fintech cooperation agreement last week.

Britain, in particular London, has been considered the fintech capital of the world for some time now, while Australia has also been a formidable player in fintech.

Now the two closely linked nations are looking to help fintech businesses expand into each other’s countries.

Both Britain’s Financial Conduct Authority (FCA) and the Australian Securities and Investments Commision (ASIC) agreed to treat companies in each other’s countries as innovative businesses.

By giving them this label, certain hurdles faced by international companies may be loosened to allow easier access.

It can be difficult for smaller fintech startups to expand globally because of high barriers of entry.

The FCA’s fintech hub has helped more than 200 businesses but has only authorized 18, while ASIC has only authorized 10 licenses themselves.

Britain and Australia have long been connected with one another, especially in the realm of business.

The move by both countries comes just a week after a separate group of Australian regulators passed a comprehensive set of new regulations.

Treasurer Scott Morrison recently passed new laws similar to the agreement with Britain, which allows younger fintech startups to bypass certain regulations and entered the marketplace without being inhibited by regulations and paperwork.