From novel methods of banking to crowd funding, peer-to-peer lending and fund administration, fintech is growing ever more important in our increasingly e-connected world.
To assist, support and encourage new start up banks breaking into the market the PRA and FCA have launched their joint New Bank Start-up Unit.1 The particular objective is to support those new entrants in navigating the early days of authorisation. This joint-initiative will offer information, support and careful supervision and guidance during the early years of authorisation. The Unit aims to reduce entry barriers to the market for prospective banks as new banks utilising fintech are key to bringing innovation, competition and diversity to the banking sector.
The Unit promises a fresh approach to regulation, intended to nurture and support these start-ups, providing regular regulatory updates and capital and liquidity review (where appropriate) in a different manner to the usual approach of regulatory submissions.
Footnotes
1 https://www.fca.org.uk/news/new-bank-startup-unit-launched-by-the-financial-regulators
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
