Over the past few months, the fast-growing financial technology – or ‘fintech’ – sector has become an ever-more prominent theme in The Treasurer's online coverage.
In September, we reported Misys’ findings that traditional banks are finding themselves under increasing pressure from agile and nimble fintech players. Last month, we explored the World Economic Forum's view that the emerging industry could bridge a $2 trillion funding gap for businesses around the world.
Perhaps most significantly, though, we also revealed that the sector sees regulation as the biggest hurdle it will have to surmount in the course of the coming year.
It is in the interests of negotiating that hurdle, and providing added representation for the industry, that UK-based fintech trade association Innovate Finance has engaged in an ambitious strategic alliance with transatlantic corporate network BritishAmerican Business.
Announced on 8 December, the collaborative partnership aims to forge closer ties between fintech operators in New York and London, making it easier for companies to share knowledge and grow their activities from the sector’s two, largest metropolitan hubs.
Innovate Finance chairman Alastair Lukies CBE explained: “As the next wave of innovation in financial services begins to evolve, we are seeing London and New York emerge as the epicentres of collaboration between the incumbents and disruptors – between regulators and innovators, and investors and entrepreneurs.
“The partnership with BritishAmerican Business provides an ideal platform for both organisations to continue to champion the global agenda for the fintech ecosystem, and to maximise benefits to their respective members on both sides of the Atlantic.”
BritishAmerican Business CEO Jeffries Briginshaw said: “The pace of innovation in this sector is rapid, and we aim to be out in front as we agree the collaborations that will drive an exciting joint programme for 2016 and beyond – initially focused on New York.”
He added: “Our ability to provide information, access and influence among our members and policymakers will be significantly enhanced by this cooperation.”
With the aim of encouraging best practice in a sector typified by considerably diverse ways of doing business, the organisations will also work to create the world’s first transatlantic, advanced fintech course between two top-level UK and US universities. The institutes chosen to run the courses will be announced in early 2016.
Law firm Hogan Lovells – global strategic partner for Innovate Finance and a member of BritishAmerican Business – will act as the partnership’s legal counsel.
Welcoming the agreement, Hogan Lovells partner Rachel Kent said: “Given the strength of our own transatlantic and regulatory capabilities, particularly in New York, Washington and London, we look forward to helping nurture the fintech entrepreneurs and emerging businesses that this alliance will foster.”