(23 March 2016 – Australia) Financial regulators in Australia and United Kingdom signed a cooperation agreement to help financial technology (fintech) companies expand into each other's markets, the Australian Securities and Investments Commission (ASIC) said.
ASIC said that under the agreement, it and the UK's Financial Conduct Authority (FCA) and the will refer to one another “innovative businesses” seeking to expand to help break down barriers to entry.
The Australian corporate watchdog said it has granted 10 licences, while its UK counterpart has supported over 200 fintech businesses and authorised 18.
According to a recent industry study from KMPG, traditional financial institutions are bolstering their fintech operations in response to growing competition from smaller digital rivals. The firm estimates that around A$27 billion of current banking revenue was “at risk” from new market entrants..
Fintech industries in the UK and Australia are estimated to have annual revenues of around A$12.5 billion and A$1.3 billion respectively, with both growing rapidly.