UK and India to strengthen fintech partnership to boost growth
A new report laid out recommendations to the UK and Indian regulators and governments to grow the fintech sector in both countries.
Over the past 10 years, the UK and India have strengthened their partnership across financial services and fintech.
Formed in 2014, the India-UK Financial Partnership (IUKFP) has released a new report on how the two countries can accelerate and enhance their collaboration to boat growth in fintech.
It outlines recommendations for policymakers and regulators in both countries, and implements regulations from the Kalifa Review, including learning from each other’s successes and how to further strengthen each country’s fintech ecosystem.
Ron Kalifa, who helped guide the UK recommendations, said India is “not just one of the most promising fintech markets, but also a natural partner for the UK”.
It is currently the third largest fintech centre in the world, and the India fintech industry is estimated to be worth $160bn by 2025.
“The UK and India are both world-leading fintech centres and make natural partners on financial innovation,” Bill Winters, Standard Chartered Group CEO and UK Chair of the IUKFP, said.
“There is much for us to learn from our respective successes and much to gain from our respective potential.
“We believe that if adopted, the recommendations set out in this report – which have been developed by businesses across the UK and India – will help to deepen and strengthen our collaboration and opportunities for growth in the future.”
On the UK side, the report recommends launching an international fintech credentials portfolio, with India as the priority partner for the UK to build alignment with developing markets.
It also recommends securing access to global talent with a UK-India mobility partnership and developing the UK as a complementary source of capital for Indian fintechs thinking of going public, among other suggestions.
“India and the United Kingdom have a long-standing economic relationship, with the UK being one of India's top trading partners,” Uday Kotak, Kotak Mahindra Bank MD and CEO and India Chair of the IUKFP, said.
“Both countries also have world-class fintech ecosystems, making them natural partners in financial innovation.
“The UK can learn from India’s successful experience in payment systems whereas for Indian fintech firms and unicorns, the UK could be a good source for both growth capital and emerging technology pool.”
The report specifically singled out Revolut as proof of existing demand for UK fintechs looking to expand to India and to create more partnerships between the UK and India.
Revolut entered the Indian market in 2021 when it appointer Paroma Chatterjee as India CEO and made a multi-million pound investment in its development, created 300 jobs in India and 60 in the UK within a year.