At the end of March the UK’s Financial Conduct Authority (FCA) and its Australian counterpart – the Australian Securities and Investments Commission (ASIC) – announced that they were joining forces to help boost fintech businesses in both countries. A development welcomed by the two Aussie members of Aspectus’ fintech PR team.
The deal – which has been labelled a world-first – will see businesses receive reciprocal support from financial regulators as they look to set up shop in either the UK or Australian market.
The agreement makes sense. Similarities between the two countries abound and importantly the deal should make it significantly easier for genuinely innovative businesses to gain authorisation in a new market.
Clearly it may take a little bit of time before we see the full impact of the new relationship, but given the high level of innovation in the financial services sectors in both countries, it shouldn’t be too long before we see a flurry of robo advisers, crowd funding platforms, or block chain service providers entering the UK from Australia, and vice versa.
Of course, fintech businesses that decide to make the leap and expand into the UK or Australian markets via this mechanism will be aware that regulatory authorisation is just one step in the long road to a successful international expansion.
There will probably be a few bumps along the way and many different obstacles to overcome, but businesses that can successfully stand out from the crowd and effectively reach a new audience from day one, will be at a significant advantage over other competitors.
And while there are distinct similarities between the UK and Australian financial services markets, businesses can’t use these similarities as a substitute to having an in depth local knowledge of new potential customers and the marketing and communications that will engage them.
Creating this engagement takes real commitment and imagination but ask anyone who has established a successful business overseas and this is what makes a significant difference to long term success.