The first of its kind in the UK, the guidelines aim to accelerate fintech growth and reinforce the UK’s place as a global centre of innovation in financial services.
Financial institutions expect an 82 per cent increase in partnerships with fintech companies within the next three years , demonstrating a clear increase in appetite for collaboration.
Investment in British fintechs remains high, with the £12.2bn invested in the first half of 2018 representing over half of that invested across Europe, and more than a fifth of that invested globally. All of this illustrates the importance of fintech and its integration into the wider financial sector – a process that the guide aims to ease.
The new guidelines have been developed through sponsorship from the government-backed Fintech Delivery Panel – an initiative run by Tech Nation – and are part of HM Treasury’s Fintech Sector Strategy. The document has been jointly created by the UK’s top retail banks – including RBS – sitting on the Fintech Delivery Panel. Leading fintechs, such as MarketInvoice, The ID Co., and iwoca, also contributed to developing the guidelines, with all parties coming together to identify and address the issues that prevent fintechs and financial institutions from becoming successful allies.
The guide also provides an explanation of both the commercial considerations and the necessary checks and controls that need to be satisfied to meet business and regulatory demands. This includes recommendations on preparation, data gathering, due-diligence, on-boarding, commercial and contractual processes, as well as data protection and information security considerations.
Dan Palmer, Head of Manufacturing and Services at BSI, said: “It is vital that we make it easier for fintech companies to engage with established banks. Not only will this collaboration improve services for customers, but it will also ensure that the UK remains at the forefront of the financial sector. These guidelines should facilitate these engagements, allowing fintechs to navigate the choppy waters of the pitch process with relative ease.”
Matt James, RBS Head of Scouting UK & Europe, said: “Partnering with fintechs to develop the best new products and services for our customers is central to our innovation strategy. We’re proud to have played an important role in developing these new guidelines and we are confident they will help us deepen and strengthen our relationship with the fintech community.”