London’s Fintech Émigrés look to Australia
Since the Brexit vote of 2016, the City of London has been rapidly losing its status as the financial technology capital of the world. Fintech startups have been moving their offices to other European cities; in fact, the mayors of Paris, Frankfurt and Amsterdam have been actively courting these companies, but Australia has benefited in a more direct manner.
In the wake of the Brexit referendum, finance industry leaders in London were dismayed when they saw companies packing up and leaving. This situation prompted Mayor Sadiq Khan and city officials to spring into action and come up with ways to retain the financial prestige of London.
On March 12, the Australian Treasury and the British Chancellor of the Exchequer revamped an agreement to establish a “fintech bridge” that will enhance development cooperation between the two nations.
The Fintech Bridge Advantage
Essentially, the UK-Australia fintech bridge seeks to streamline the licensing process in both countries. For instance, an Australian company such as Lendi, which provides a smart mobile platform for individuals seeking home loans, wants to negotiate with British banks that may be interested in adopting this technology. The fintech bridge agreement would take into consideration the licensing that Lendi has already acquired in Australia and would direct British regulators to speed up the required licensing process for this company in the UK.
For UK fintech companies, Australia can be a springboard for reaching the lucrative Asia Pacific market. As another example, say a London startup that specialises in digital payments wants to get a foothold in the Asian market; this fintech firm could partner with an established Australian company such as Airwallex, which has already secured connections in Asia. The fintech bridge would allow the British company to comply with Australian regulators as quickly as possible.
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