Call for standards to aid fintech growth

Call for standards to aid fintech growth

Standards have the potential to strengthen and speed up fintech development in the UK, according to a paper recently published by BSI.

The paper, entitled A Roadmap for Fintech Standards, presents the findings of research carried out for the BSI by Finextra among fintech companies, banks, trade associations and technology vendors. The research explored opportunities for standards to support the further growth of fintech in the UK.

With its fintech market estimated to be valued at £20bn, the UK is already seen as a global fintech centre, helped by a regulatory environment that promotes innovation. However, there are still barriers to fintech growth, often resulting from the challenge of integrating new thinking, technology and business models into an industry in which operational resilience and consumer protection are paramount.

The research surfaced three key areas where standards could help: in smoothing and easing the procurement and onboarding process, in helping the integration of fintechs into the financial services industry, and in providing potential support for consumer assurance around the use of new fintech driven services. The new paper outlines approaches that could be taken to develop standards in these areas.

Keith Saxton, Chairman of techUK’s Financial Services & Payments Programmes, commented: ''BSI's research reaffirms the central role standards play in the financial services industry and its technology infrastructures. Proactive collaboration in standards will promote the UK's leadership position in fintech innovation and support the critical shift of the industry's infrastructures to digital systems.''

Diana Paredes, CEO and co-founder of fintech start-up Suade, said: “Standards improve efficiency in decision making and hence can also foster innovation and business model changes if nurtured properly and openly. Standards around procurement and collaboration could pave the way and facilitate the conversation, triggering more pilots/POCs/projects, reducing this sense of risk that can be associated when dealing with new technologies.”

According to BSI, the research has identified a definite appetite for standards to help drive the growth of fintech. It has also found that an open and consensus-driven approach to their creation will be essential.

The research findings can be downloaded here.

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