Top banks agree FinTech rules of engagement
Written by Peter Walker
Business improvement company BSI and the government-backed Fintech Delivery Panel have launched new guidance to improve engagement between FinTech companies and financial institutions.
The guidelines have been jointly created by the Royal Bank of Scotland, Barclays, HSBC UK, Lloyds Banking Group and Santander, which sit on the Fintech Delivery Panel. FinTechs such as MarketInvoice, The ID Co. and iwoca also contributed, with all parties identifying the issues that prevent startups and established firms becoming allies.
The Publicly Available Specification guide - PAS 201:2018 - seeks to set the UK apart by clarifying the process for FinTechs and industry incumbents alike, reducing time, cost and risk for all parties.
It will be freely available not only to the 1,600 FinTechs currently operating in the UK, but also to those international FinTechs wanting to engage with UK-based financial institutions.
The guide also provides an explanation of both the commercial considerations and the necessary checks and controls that need to be satisfied to meet business and regulatory demands. This includes recommendations on preparation, data gathering, due-diligence, onboarding, commercial and contractual processes, as well as data protection and information security considerations.
John Glen, economic secretary to the Treasury, said: “The UK is a trailblazer in FinTech, but to be the best in the world we need to make it as easy as possible for newcomers to collaborate with the bigger players.
“That's why we helped to set up the Fintech Delivery Panel, and thanks to the guidelines published today the industry will be able to work closer together, benefiting customers across the country.”
Dan Palmer, head of manufacturing and services at BSI, added that it is vital that we make it easier for FinTech companies to engage with established banks. “Not only will this collaboration improve services for customers, but it will also ensure that the UK remains at the forefront of the financial sector.
“These guidelines should facilitate these engagements, allowing FinTechs to navigate the choppy waters of the pitch process with relative ease.”