The Financial Conduct Authority (FCA) has recently announced that, in collaboration with 11 other regulators and related organisations, it has created the Global Financial Innovation Network (GFIN), in order to build on the FCA’s proposal to create a ‘global sandbox’.

Jeffrey Davidson noted that the collaboration is an opportunity to “breathe new life into the financial sector”.

He commented:

“The so-called “global sandbox” is certainly timely: current financial innovation—driven by the likes of big data, artificial intelligence, and blockchain technology—is animated not by domestic agendas, but by global forces. What is more, the Global Financial Innovation Network is, at least in theory, a clever platform for bringing firms into dialogue with regulators. This is, at present, especially tricky for new firms looking to introduce ideas in various countries with each having its own respected system of financial regulation.

“Hopefully, the Global Financial Innovation Network will speed-up the time it takes to introduce innovative ideas to new markets. In turn, this accelerated rate of change, especially within emerging markets, could cause some healthy disruption.”

Jeffrey said that he is particularly “excited” by the prospective environment for firms to trail cross-border solutions and share their experiences in an open discussion forum.

However, he concluded that the success of the GFIN will reside in how many regulators and firms agree to participate, emphasising that in order for the scheme to have the type of “real-world impact” on the financial sector that it promises on paper, a rigorous hive mind of experience and intelligence needs to be established.

Read Jeffrey’s comments in Money Age