The UK and India seek to further strengthen fintech cooperation
A new report from the India-UK Financial Partnership (IUKFP) – the leading forum for financial services cooperation between India and the UK[1] – describes how the two countries can accelerate and improve cooperation on financial technology (FinTech) and innovation to increase respective sector growth.
The report, “Harnessing the power of FinTech and data”, includes a number of recommendations for the Indian and UK governments and regulators. They highlight the opportunities for the UK to work with India as a priority partner to implement the recommendations of the FinTech Review chaired by Sir Ron Kalifa, including learning from each other’s successes, and also how to further strengthen the two countries’ respective FinTech ecosystems. and contribute to the common agendas for financial inclusion and equalization.
The IUKFP recommendations are focused on decision-makers and regulatory authorities in each country:
On the UK side:
Launch of an international FinTech credential portfolio and an international FinTech portal for inward investment from India through pilot programmes, making India the priority partner for the UK in building adaptation to developing markets.
Secure access to global talent by launching a UK-India mobility partnership with a FinTech lens.
Implement a digital ID coalition, bring together different stakeholders, look at how India’s world-class Aadhar digital identity scheme can be extended to the UK and learn from India’s experience with payment systems.
Develop the UK as a complementary source of capital for Indian FinTech firms and unicorns considering IPO.
On the India page:
Leveraging India Stack considers how access to the new account aggregator framework, which allows data to be shared between multiple parties, can be extended to more national and international firms and foster innovation.
Interoperability and bank switching, how India can learn from the UK’s open banking experience.
Cross-border applications of central bank digital currencies (CBDCs) and the role of CBDCs in improving payment systems.
The development of FinTech platforms for SME financing, which will help encourage cross-border trade and capital flows between India and the UK.
Improve the FinTech ecosystem with cyber security and data protection, ally India and UK data sharing regimes to share best practices and establish mechanisms for specialist firms from both countries to learn and develop bilaterally.
Bill Winters, CEO, Standard Chartered and UK Chair of the IUKFP, said: “The UK and India are both world-leading FinTech centers and are natural partners for financial innovation. There is much to learn from our respective successes and much to gain from our respective potential. We believe that, if adopted, the recommendations in this report – which have been developed by businesses across the UK and India – will help to deepen and strengthen our collaboration and opportunities for future growth.”
Uday Kotak, MD & CEO, Kotak Mahindra Bank Ltd and India Chair of IUKFP, said “India and the UK have a long-standing economic relationship, with the UK being one of India’s top trading partners. Both countries also have world-class FinTech ecosystems, making them into natural partners in financial innovation. The UK can learn from India’s successful experience in payment systems, while for Indian FinTech firms and unicorns, the UK can be a good source of both growth capital and new technology pool. The recommendations presented in this report can improve the FinTech ecosystem further, be in favor of financial inclusion and the establishment of new benchmarks worldwide.”
The IUKFP FinTech Working Group, which authored the report “Harnessing the power of FinTech and data”, is chaired by Sherry Madera and Professor Tarun Ramadorai. The group is grateful to Sir Ron Kalifa for his guidance on UK recommendations.
