One of UK’s leading P2P lending platform Crowd2Fund is setting up an Australia branch in order to become one of Britain’s first financial companies to take advantage of the new ‘FinTech Bridge’ between the UK and Australia.
The ECA (Enhanced Cooperation Agreement), was signed by the Financial Conduct Authority, and the Australian Securities and Investments Commission (ASIC), was designed to make it easy for regulated FinTech companies, each known for having their own financial planning website, in both countries to start operating in either market.
Key benefits of the Bridge include faster company licensing between the two countries, as well as allowing for better cooperation between the FSA and the ASIC for the growth of the financial markets in each respective country.
Director General for DIT Australia, a firm with its own financial planning website, says this new FinTech Bridge could not have timed its entry into the market any better. He says that it, the result of strong demand from both UK and Australian companies to enter each other’s respective markets, will act as a tool for easy market entrance. He expresses joy for this new cooperation from the FCA, ASIC, and the Department for International Trade, Australian and HM Treasuries.
Crowd2Fund will start taking advantage of the FinTech Bridge starting from summer of 2018, which will allow them access to Australia’s FinTech market, which has a potential reach of about 2.2 million businesses. Currently, they’re in the process of submitting their licence application to the applicable Australian, setting up their office in Sydney, recruiting local investors and making adjustments to their platform so they can properly operate in Australia.
Initial pre-launch activity will include a collaboration with the Department of International Trade, with Crowd2Fund promoting the FinTech Bridge to Australians. Rob Older, who’s been with the company since its founding in 2014, will be handling the Australian branch in the early stages. Whilst Crowd2Fund gets an obligatory Australian regulatory licence, Rob and his team will be focused on seeking funds and building the company’s investor community in Australia.
Crowd2Fund already has a business for investors, the Barefoot Conservation, a social enterprise aimed at cleaning up Indonesia’s oceans of plastic waste.