Fin Tech firms having a key business criteria
when approaching the larger traditional
financial institutions in EMEA.
“For a Fin Tech start-up to succeed, they
need a great idea which is of use, a fantastic team, and there must be strategic ideas.
You need to find a senior sponsor/executive
within the bank, who says ‘if this start up
works’ it will create a solution for a problem,” he said.
Of course, Fin Tech will face challenges on
the European front through the changing
political context as well as the developments of external regulations will no doubt
have an impact.
UK leads the way
However, European regulators are taking a
key role in supporting Fin Tech with David
Geale, director of policy at the Financial
Conduct Authority (FCA) suggesting that the
creation of an innovation lab at the FCA has
boosted Fin Tech development.
“We set up the lab in 2014, to help firms
with ideas that will benefit consumers and
we’ll help them to understand the regulation
and look at our own rules,” explains Geale.
“We have supported around 300 firms with
very different ideas and some of those are
now active and in the market.
“We’ve also taken around 42 of those firms
through the authorisation process and customer satisfaction has been around 76%, we
give direct support to firms, we have a strategy to work with other regulators and we’ve
issued guidance on the cloud,” says Geale.
The FCA has been one of the best regula-
tory supporters of Fin Tech developments
throughout the world, even sparking an FT
headline which read ‘UK regulators are the
most Fin Tech friendly’.
Along with speaking at multiple events on
the topic of Fin Tech, the UK regulator is also
encouraging innovation through projects of
its own and has also been expanding its team.
The FCA had also accepted 24 out of 69
applications from Fin Tech firms through its
regulatory sandbox initiative at the time
To give some context to the development
of Fin Tech, Sibos 2015 in Singapore had one
Fin Tech session; Sibos 2016 in Geneva had
four. With the emphasis on EMEA seemingly
on how Fin Tech could be applied purely for
the benefits of our own industry.
Speaking at the BBA Fintech Banking Conference, director of strategy and competition
Christopher Woolard, said that the 24 firms
applying to join the FCA’s regulatory sand-
“We set up the lab in 2014, to
help firms with ideas that will
benefit consumers and we’ll
help them to understand the
regulation and look at our
—DAVID GEALE, DIRECTOR OF POLICY,
FINANCIAL CONDUCT AUTHORITY
Winter 2016 FinTechQ 65