Israeli, UK Regulators Co-Launch Network to Promote FinTech

This Thursday, the Israeli Securities Authority (ISA) announced that it is co-launching a new network, in conjunction with a number of other regulators across the globe, to promote financial technology.

Spearheaded by the UK's Financial Conduct Authority, the Global Financial Innovation Network (GFIN) is going to be composed of 29 regulators and financial bodies, including the International Monetary Fund and the World Bank.

The main purpose of the new group is to foster innovation and allow companies that are developing financial technology products to navigate the various regulatory regimes of the different bodies that make up the GFIN.

The group is also developing a new 'sandbox' for companies to develop their products and test-run them. Companies that want to join the sandbox will have until the end of February of this year to apply for membership.

ISA - fostering Fintech Fintech Financial Technology (fintech) is defined as ay technology that is geared towards automating and enhancing the delivery and application of financial services. The origin of the term fintechs can be traced back to the 1990s where it was primarily used as a back-end system technology for renowned financial institutions. However, it has since grown outside the business sector with an increased focus upon consumer services.What Purpose Do Fintechs Serve?The main purpose of fintechs would be to suppl Financial Technology (fintech) is defined as ay technology that is geared towards automating and enhancing the delivery and application of financial services. The origin of the term fintechs can be traced back to the 1990s where it was primarily used as a back-end system technology for renowned financial institutions. However, it has since grown outside the business sector with an increased focus upon consumer services.What Purpose Do Fintechs Serve?The main purpose of fintechs would be to suppl Read this Term

For the regulators themselves, the network will be used to share experiences in financial technology. For example, determining appropriate measures to take, or not take as the case may be, with regard to new technologies and business models.

As with the FCA and a number of other prominent regulators, the ISA has been developing its own initiatives regarding financial technology for some time.

Back in July, for instance, the Israeli regulator created a 'regulatory Hub Hub A hub as its name suggests describes the center of activity or a focal point. In terms of finance, the term hub can refer to Hub and Spoke Trading or a liquidity hub. However, the terms are not interchangeable, but they do overlap. Hub and Spoke trading refer to a network that posts bids and offers for an asset and therefore creates a real market. For example, Hub and Spoke trading allow traders to see the other submissions and offers from other traders on the platform. This is a popular method A hub as its name suggests describes the center of activity or a focal point. In terms of finance, the term hub can refer to Hub and Spoke Trading or a liquidity hub. However, the terms are not interchangeable, but they do overlap. Hub and Spoke trading refer to a network that posts bids and offers for an asset and therefore creates a real market. For example, Hub and Spoke trading allow traders to see the other submissions and offers from other traders on the platform. This is a popular method Read this Term' aimed at fostering innovation in the financial technology space.

"I have placed financial innovation at the top of the Authority's agenda and on the capital market's agenda," said ISA Chairwoman Anat Guetta. "Israel is a pioneer in terms of innovation in the field of financial technology, cyber and other fields. It is our duty to enable the companies to have the regulatory infrastructure that will keep the interest of the investing public and will enable the development of innovative technologies that will eventually improve and make the consumption of financial services in Israel more accessible.