Member Article

New 'FinTech Bridge' to give UK financial service innovators a gateway to Asia

The government has announced the agreement of a new bilateral UK-Singapore ‘FinTech Bridge’ that aims to strengthen investment and expansion opportunities for the thriving Financial Technnology (FinTech) sectors in their respective countries..

Announced yesterday as part of the second UK-Singapore Financial Dialogue at 10 Downing Street, the new ‘bridge’ also included the signing of a regulatory cooperation agreement between the Financial Conduct Authority (FCA) and the Monetary Authority of Singapore (MAS).

The deal between the two regulators is central to greater cooperation between the two nations, making it easier for them to refer FinTech firms to each other, and paving the way for greater information sharing about financial services innovation in their home markets.

Of most interest to UK tech firms, the government has claimed that the new link will give UK FinTech startups who are looking to scale greater opportunities to expand into Singapore and beyond, as well as opening up the Singaporean market for UK investors.

It marks further steps by the government to consolidate the UK’s position as the world leader in financial services innovation, which generated over £6.6bn for the economy last year and accounted for over 60,000 jobs.

Commenting on the announcement, the Economic Secretary to the Treasury, Harriett Baldwin, said: “I am delighted to announce that we are launching the first ‘FinTech Bridge’ with Singapore today.

“This is a great opportunity for the FinTech industry in both the UK and Singapore – and builds upon the deepened financial and economic cooperation between the two countries.

“Forging this bridge with Singapore is the next step on our journey to ensure that the UK and Singapore both remain outstanding FinTech centres.”

Of course, the bridge will be a two-way street, with Singaporean FinTech firms and investors also benefitting from greater access to the UK market, meaning potentially greater competition for the UK’s tech firms.

Jacqueline Loh, Deputy Managing Director of the Monetary Authority of Singapore, believes the agreement will be of mutual benefit to the FinTech sectors in both countries.

She added: “The FinTech bridge that is forged with the UK today is a significant step forward in our FinTech journey. It will support FinTech innovators who wish to use Singapore as a base for collaboration and as a gateway to other markets in Asia.

“Singapore’s vibrant FinTech ecosystem is well-positioned to serve the Asian market, the fastest growing region in the world. The agreement between the Monetary Authority of Singapore and the Financial Conduct Authority will also create opportunities for Singapore-based companies to grow and scale into the UK market.”

Looking to promote your product/service to SME businesses in your region? Find out how Bdaily can help →