UK and India to strengthen fintech partnership to boost growth
A new report issued recommendations to UK and Indian regulators and authorities to expand the fintech sector in both countries.
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Over the past 10 years, the UK and India have strengthened their partnership across financial services and fintech.
The India-UK Financial Partnership (IUKFP) was formed in 2014 and has released a new report on how the two countries can accelerate and enhance cooperation for fintech growth.
It outlines recommendations for policymakers and regulators in both countries, and implements the Kalifa Review, including learning from each other’s successes and how to further strengthen each country’s fintech ecosystem.
Ron Kalifa, who helped guide the UK’s recommendations, said India is not only one of the most promising fintech markets, but also a natural partner for the UK.
It is currently the third largest fintech hub in the world and the Indian fintech industry is estimated to be worth $160 billion by 2025.
“The UK and India are both world-leading fintech centers and are natural partners for financial innovation,” said Bill Winters, CEO of Standard Chartered Group and UK Chair of the IUKFP.
“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 partnership and opportunities for growth in the future.”
On the UK side, the report recommends launching an international fintech credential portfolio, with India as the priority partner for the UK to build adaptation to developing markets.
It also recommends securing access to global talent with a UK-India mobility partnership and developing the UK as a complementary source of capital for Indian fintechs thinking of going public, among other proposals.
“India and the UK have a long-standing economic relationship, with the UK being one of India’s top trading partners,” said Uday Kotak, Managing Director and CEO of Kotak Mahindra Bank and India Chair of the IUKFP.
“Both countries also have world-class fintech ecosystems, making them 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 emerging technology pool.”
A number of UK fintechs have successfully launched in India in recent years, including Tide and Revolut.
The report specifically singled out Revolut as evidence of existing demand for UK fintechs looking to expand into India and to create more UK-India partnerships.
Revolut entered the Indian market in 2021 when it appointed Paroma Chatterjee as its India CEO and made a multi-million pound investment in its development, creating 300 jobs in India and 60 in the UK within a year.
