If the level of capital flowing into the financial technology sector is any indication, the growth in number and size of financial technology start-ups cannot be denied. According to a report by KPMG, global investment in fintech companies reached US $57.9 billion by mid-year of 2018, already exceeding the total investment figures of 2017.
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The proliferation of Fintech comes at a time when international regulators are significantly increasing their oversight of the financial services sector. As such, the most appropriate way to approach Fintech continues to preoccupy international and regional standard setters. Whilst recent headlines over the past few months might suggest that regulators’ main focus is on virtual currencies, over the course of 2017 a number of key international standard setters released papers focussing more widely on Fintech – including the Financial Stability Board (“FSB“), the Basel Committee on Banking Supervision (“BCBS“) and the EU Commission. Typically, initiatives set out by the FSB and BCBS filter down to inform policies developed at the regional and national levels in due course.
In March 2017, the Bank of England FinTech Accelerator launched a new fintech community. The new community has three main objectives:
- to share developments, trends and insights to facilitate learning within the Bank and across the sector;
- to ensure the Bank is engaging with a range of fintech firms; and
- to increase networking across fintech-related organisations.