According to the Treasurer, the UK-Australian Fintech Bridge, signed in London by Mr Morrison and UK Chancellor of the Exchequer Philip Hammond, will deepen regulatory ties between the nations.
The agreement involves:
- collaboration between governments to identify emerging fintech trends and policy issues, enabling better policy responses;
- sharing of Australian and UK regulatory expertise, facilitating the entry of fintech start-ups into each jurisdiction’s regulatory sandbox and exploring opportunities for quicker licence processing for fintech firms that are already licensed or authorised in the other country;
- enhancing bilateral trade and investment flows, with trade and investment promotion agencies supporting fintech firms looking to expand overseas; and
- promoting engagement between Australian and UK fintech sector bodies to discuss collaboration opportunities between fintech businesses.
“Fintech is changing the way we engage with financial providers, giving consumers and businesses more control over and choice in the services they receive. It is also delivering better outcomes by increasing access to finance, and increasing competition in financial services,” Mr Morrison said.
“The Turnbull government recognises the significant growth opportunity for both the UK and Australian economies from closer collaboration on fintech developments.”
The deal will enable Australian firms to tap into the lucrative UK fintech market, which generates £7 billion in annual revenue, and employs 61,000 people.