Bringing Fintech innovation to particular regions or even countries is about much more than just words. Infrastructure has to be set up to foster development, and the regulatory landscape must give startups room to breathe. Financial services bring a lot of potential to the table, and investors need to be made aware of the benefits and opportunities.
When using the term ‘infrastructure” in the financial services sector, there are several different factors to take into consideration. First of all, establishing a new hub of innovation in an area means developers and entrepreneurs have to be able to travel there in a convenient manner. Ensuring there are multiple ways to reach the destination through traffic or public transport, or even locating near a big airport are two factors to take into consideration.
UK Establishes Fintech Infrastructure
But there is a bigger infrastructure picture to take into account as well. In Manchester, England, the plan is to build a financial centre of excellence. What this does is attract potential investors regarding Fintech opportunities in the region, as well as startups and entrepreneurs. Plus, there are lots of universities in the area, with many graduates every year. Fostering their interest in financial services jobs is another way of making use of existing infrastructure.
In the end, it will be up to these startups, entrepreneurs, and graduates to build the Fintech solutions of the future. Financial services are becoming more important than ever before, and establishing a healthy ecosystem for innovation is the top priority. Creating a centre of excellence, like in Manchester, is a big step in the right direction to foster future developments.
The elephant in the room is regulation and existing financial legislation, of course. With so many new forms of payments and services popping up every year, the legal system is playing catch-up to Fintech. This makes it difficult for smaller companies to decide whether they should innovate first, or ensure they are compliant with all regulatory guidelines.
Over in Singapore, they are taking the best approach to tackle these issues. By establishing a regulatory sandbox, Fintech centers and businesses in the country can focus on their products and services first. Whether or not the rest of the world will follow their lead regarding this matter, remains unknown for now.
The infrastructure needed to foster Fintech innovation is much larger than most people anticipate. There is more to it than co-working space or ensuring locations can be reached in a convenient manner. Regulation is an integral part, and governments also have a role to play in actively promoting the efforts in their region.
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