The new FinTech bridge, an agreement that makes it easier for UK and the Republic of Korea to invest in FinTech, will help UK FinTech firms and investors access the Asian market and expand to the Republic of Korea, as well as attracting Korean FinTech companies and investors to the UK.
It was announced at the 3rd annual UK-Korea Financial Forum, taking place in the City of London’s Guildhall today. The event was attended by UK and Korean officials and FinTech companies.
The launch included the signing of a regulatory Co-operation Agreement between the UK’s Financial Conduct Authority (FCA) and the Korean Financial Services Commission (FSC).
The Co-operation Agreement will enable the regulators to share information about financial services innovations in their respective markets, including emerging trends and regulatory issues.
By strengthening links between the regulators and governments, the FinTech bridge will reduce the barriers to entry in a new jurisdiction and further encourage innovation in both countries’ financial services sectors. It will 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 go from strength to strength. The UK is a global leader in FinTech and the government has worked to create a positive environment for our FinTech firms to thrive in, including signing the first ever FinTech bridge with Singapore in May. Last year the UK FinTech sector employed over 60,000 people and generated £6.6 billion in revenue.
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 example, thanks to FinTech individuals are now able to open a bank account entirely online without the need for physical documents, and peer-to-peer lenders help their users to lend directly to one another, cutting out the middle-man to deliver better rates to both the lender and the borrower.
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.
Chancellor of the Exchequer, Philip Hammond said:
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.
Andrew Bailey, Chief Executive of the FCA said:
The UK attracts innovators from around the world and as a result we need to continue our support in this fast moving sector. These Co-operation Agreements are absolutely vital in fostering an environment of FinTech innovation on a global scale. We look forward to working closely with the FSC on our efforts to promote innovation in our respective markets.
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.