Financial technology groups that represent more than 20 cities all over the world are planning to form a federation of “fintech” hubs this year, Reuters reported Thursday.
It would be the first attempt to coordinate and globalize web-based innovation transforming the financial industry. Also fintech is promised to “disrupt”
traditional financial activity.
As a part of fintech, the "blockchain
" protocol is provided. It could enable the clearing and settlement of securities such as stocks and bonds without the need for intermediaries such as banks.
The federation will also offer customers cheaper, faster and easier-to-use services, and financial access to people who don't or can't currently use the banking system.
The federation is believed to enable global hubs to share business knowledge, give start-ups access to new markets, and provide the sector with a global voice."It's a group of equals. It's a group of people that globally support innovation for the benefit of the banks and the start-ups,"
Fabian Vandenreydt, global head of Innotribe and the SWIFT Institute, told Reuters.
Innotribe and Innovate Finance say the new federation will be cooperative rather than competitive. Fintech will be formally launched at next month's Sibos banking conference in Geneva.
Representatives of more than 20 fintech clusters have signed letters of intent to join the federation, where fintech hubs will be ranking according to various criteria, such as the ease of doing business, the amount of capital and talent available, and the regulatory environment.