Global financial innovation is in the works. Earlier this month, The Bureau of Consumer Financial Protection (BCFP), working in collaboration with 11 financial regulators and related organizations, announced an initiative to create the Global Financial Innovation Network (GFIN).
This announcement comes after the Financial Conduct Authority (FCA) unveiled the idea of a ‘global sandbox’ back in February. After the release, the FCA received more than 50 responses of positive support and feedback where several key themes for the direction of the group emerged.
Key Themes Include:
- Regulatory cooperation: To provide a setting for regulators to collaborate on common challenges or policy questions firms face in different jurisdictions
- Speed to market: One of the main advantages for the global sandbox could be reducing the time it takes to bring ideas to new international markets
- Governance: Feedback highlighted the importance of the project being transparent and fair to those potential firms wishing to apply for cross-border testing
- Emerging technologies/business models: A wide range of topics and subject matters, particularly those with notable cross-border application like AI, data protection, KYC and AML were highlighted as key points of interest in the feedback.
"We look forward to working closely with other regulatory authorities, whether in the U.S. or abroad, to facilitate innovation and promote regulatory best practices in consumer financial services." - Mick Mulvaney, Acting Director of the BCFP
What will the GFIN look to accomplish? The goal is to work towards a more efficient method for innovative firms to interact with regulators, helping them navigate between countries as they look to scale new ideas. Through collaboration and shared experiences from their respective markets, they will provide a forum for joint policy work and discussions providing firms with an environment where they can feel comfortable trialing cross-border solutions.
Over the next two months, the Global Financial Innovation Network will be looking for feedback to help them determine what their next steps are going to be. Stay tuned for more information on this group to be released in the fall.