Agreement with Singapore opens new fintech market for UK businesses
The UK and Singapore have agreed a new MoU boosting fintech trade and cooperation at their 7th Financial Dialogue in Singapore today (25 November).
- The UK and Singapore agree a Memorandum of Understanding (MoU) on the UK-Singapore FinTech Bridge to remove barriers to fintech trade and boost cooperation
- This will deepen engagement between businesses, and regulators, adding to previous co-operation
- Policy makers from both the UK and Singapore will meet regularly with the fintech sector to work to remove regulatory barriers to trade
The Fintech Bridge builds on an agreement signed in 2016 – which will remove barriers to fintech trade by opening new regular talks between regulators and businesses, in addition to previous areas of cooperation
This will increase the cooperation and sharing of information on emerging trends in the fintech sector. It will also break down barriers to trade for UK and Singaporean fintechs, boosting growth and investment opportunities.
Andrew Griffith MP, Economic Secretary to the Treasury said: said:
The UK and Singapore are among the world’s leading jurisdictions for fintech investment – and today’s announcement will only accelerate growth and innovation in our respective sectors.
The MoU we’ve announced today is crucial – and I would like to thank the Monetary Authority of Singapore for their constructive engagement throughout discussions.
CEO of Innovate Finance, Janine Hirt said:
Innovate Finance welcomes this announcement. A MoU between UK and Singapore will deliver a strengthened framework for vital regulatory and policy discussions between the two countries, enable innovation across financial services, and ensure businesses based in both the UK and Singapore have the ongoing support for their ambitions for growth to be realised.
We look forward to supporting future financial dialogues and business to business activity between these markets. We are also delighted to be working with the key organisations engaged to promote the opportunities this FinTech bridge has to offer, and to welcoming FinTech businesses to IFGS and UK FinTech Week next year.
Miles Celic, Chief Executive Officer, TheCityUK, said:
The UK and Singapore are two of the world’s most dynamic and innovative FinTech markets. The FinTech Bridge will drive exciting new opportunities and greater alignment of regulatory approaches will help with the expansion of FinTechs from the UK and Singapore into each other’s markets. Greater cooperation between government, regulators and industry will boost innovation and drive better outcomes for customers.
This MoU will also further deepen the engagement and opportunities between two of the premier international financial and related professional services centres.
The existing Regulatory Cooperation Agreement signed in 2016 has enabled the UK and Singaporean fintech sectors to closely align at a regulatory level. Today’s commitment goes further in a number of areas, making clear the business support available to firms, highlight opportunities in each other’s markets and creating a clear link between challenges firms face and policy discussions.
The MoU will come into effect next week once formalities have been completed on both sides.
- Link to joint statement: UK and Singapore deepen collaboration in FinTech and strengthen financial cooperation - GOV.UK (www.gov.uk)
- The UK and Singapore are two of the world’s leading jurisdictions for fintech investment, as set out in Innovate Finance’s 2022 Summer Investment Report.
- For instance, the report notes that in the first half of 2022 total capital invested in FinTech globally reached $59 billion – flat year-on-year. However, the UK FinTech sector continues to grow with investment reaching $9.1bn – a 24% year-on-year increase from H1 2021, and more than the rest of Europe combined.
- Across the same period, Singapore was ranked as South East Asia’s leading jurisdiction for fintech investment, and the sixth globally.
- In Europe, $17.6 billion was invested into European FinTech across 708 deals, a 10% increase compared to the same period of 2021.
However, such an increase has been driven by the positive growth in investment in UK FinTech. Excluding the UK, the rest of Europe was in fact down by 2% compared to the same period in 2021.
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