On October 24th, four primary regulators of the US banking sector, the Securities and Exchange Commission (SEC), Office of the Comptroller of the Currency (OCC), Commodity Futures Trading Commission (CFTC), and the Federal Deposit Insurance Corporation (FDIC), collectively announced that they have joined the Global Financial Innovation Network (GFIN). The GFIN is a collaborative global body involving bank regulators, market regulators, central banks, and other interested entities from about 40 jurisdictions around the world.
In addition to their shared interest in fintech innovation, the group aims to promote the adoption of regtech tools among the financial institutions that they oversee. An initiative launched by the UK Financial Conduct Authority in the summer of 2018, membership in the GFIN has grown rapidly. Until now, the only US member of the GFIN was the Consumer Financial Protection Bureau.
With today’s announcement, the SEC, OCC, CFTC and FDIC have demonstrated that US regulators share in a growing interest in international regulatory collaboration and knowledge sharing that will benefit fintech and regtech firms, and those whom they aim to serve. In February of this year, the GFIN opened an application process whereby regtech firms interested in running cross-border trials of their tools could apply for consideration to do so under a formal GFIN scheme.
Some 45 firms applied, with only 8 being provisionally accepted into the inaugural cohort. Starling is proud to be one such — and the only firm in the cohort that is focused on the problem of managing culture and conduct risk. Specifically, to date, the UK Financial Conduct Authority (FCA), the Hong Kong Monetary Authority (HKMA), the Australian Securities & Investments Commission (ASIC), and the Dubai Financial Services Authority (DFSA) have selected Starling to run trials among firms in their jurisdictions.
We are hopeful to work with US regulators new to the GFIN as well. Formal acceptance into GFIN is contingent upon submitting a testing plan that the GFIN community signs off on. If selected, Starling will join organizations around the globe working to drive innovation in the financial sector that benefits financial firms, consumers, and broader stakeholder communities.