Startups in the financial technology space have typically had a long and arduous process for getting their businesses off the ground, due to restrictive finance regulations.
However, British and Canadian regulators have just tipped the scales in favor of FinTech companies with the announcement of a rollback on regulations. As the U.K. Financial Conduct Authority (FCA) and the Ontario Securities Commission (OSC) loosen the reigns, FinTech companies will now have an easier time expanding into each other’s markets.
The partnership between the U.K. and Canada is set to help FinTech startup companies navigate regulations. The FCA and OSC will do this by sharing details on trends and regulatory problems with innovative financial services. If information is power, then these regulators are arming startups with plenty of ammo.
As FinTech moves to make financial services more accessible and efficient, this announcement is set to have a major impact on companies working with businesses in the U.K. and Canada. Most startups today are securing billions of dollars each year at the outset, and the one major issue that most face is regulations blocking those seeking a quick route to a successful company.
While FinTechs generally make financial endeavors easier for startups, there are many institutions like banks that are worried about security issues like laundering, terrorism financing and data protection. Depending upon how these concerns play out moving forward, there’s a possibility that regulations could be reeled back in.