Barbados Aims to Become a Leading FinTech Hub in the Region
The island nation of Barbados is looking to establish itself as a major player in the rapidly growing FinTech sector. The government has outlined plans to create a comprehensive ecosystem that will attract and support FinTech startups and investors.
What is FinTech?
FinTech, which stands for financial technology, refers to digital lending and credit, cryptocurrencies, mobile payments, crowdfunding, and other innovative technologies that are changing the way people manage their finances. According to a report by EY, FinTech adoption rates are highest in China, India, Russia, South Africa, and Colombia.
Why Barbados?
The Government of Barbados has recognized the benefits of promoting FinTech entrepreneurship among its population and encouraging investment in this growing space, especially for its post-COVID-19 economic recovery. To achieve this goal, the government is working to create a favorable business environment that will attract startups, investors, and talent from around the world.
Key Advantages
- Well-regulated financial services sector
- Strong laws on intellectual property
- Reputation as a compliant jurisdiction
- Favorable tax treaty network
Regulatory Support
To further support the development of FinTech in Barbados, the Financial Services Commission (FSC) and the Central Bank of Barbados operate a regulatory sandbox that allows live-testing of new and innovative financial products within a controlled setting. The first company to successfully exit the regulatory sandbox was Bitt Inc., which developed the mMoney app, allowing peer-to-peer transactions as well as digital payments facilitated by blockchain.
Commitment to FinTech Development
The FSC has also announced plans to establish a Stakeholder Advisory Committee for the International Business Sector and a FinTech Advisory Committee to help develop Barbados as a FinTech and blockchain hub. This committee will provide a platform for industry stakeholders, regulatory bodies, and government agencies to collaborate on developing regulations that encourage innovation while ensuring consumer protection and financial stability.
Conclusion
With its favorable business environment, well-regulated financial services sector, and commitment to supporting the development of FinTech, Barbados is poised to become a leading FinTech hub in the region. As Prime Minister Mia Mottley recently noted, “Barbados has all the necessary base ingredients to become a ‘best in class’ FinTech hub of the future.”