Regulators are establishing bilateral co-operation agreements, so called ‘FinTech bridges’, with other jurisdictions. These bridges enable regulators to efficiently share information about financial services innovation in their respective markets, including about emerging trends and regulatory issues, aiming to foster innovation in the area of FinTech.
Most of these agreements enable native FinTechs to scale internationally through access to the other market, whilst allowing start-ups from the other market easier access into the country. Moreover, by creating a channel between the two parties, these agreements can help attract investors as well as talent to the respective countries.
The first countries to identify the potential in bilateral co-operation were the UK and Singapore – two of the largest FinTech hubs globally. Having established the first ever FinTech bridge in May 2016, both jurisdictions have gone on to expand their network with other countries. In the meantime, other countries have recognised the benefits of such bilateral co-operation – leading to a dynamic growth in the number of FinTech bridges globally.
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