The Destination Digital report launched last week by BVI Finance, reveals the strategic priorities, challenges, and jurisdictional considerations facing global fintech businesses.
BVI Finance says that based on the views of 451 fintech executives from the world’s major financial hubs, it finds a striking 94% of global fintech leaders consider cross-border growth either critical or important to their success.
It said in fact, 63% are already operating through entities in International Finance Centres showing jurisdictions play a pivotal role in how decentralised and digital first businesses operate and grow.
According to the report, when fintech businesses choose to incorporate, several factors guide the decision-making process. Access to international markets and banking services is cited as crucial by 33% of global executives, closely followed by key attributes of jurisdictions such as a stable and business-friendly regulatory environment and an established professional services network.
The report adds that this new generation of businesses has emerged due to rapid technological advancement, radically changing new business models and products. With this in mind, global executives see investment in emerging technologies as crucial to staying competitive.
CEO of BVI Finance Elise Donovan said as this new generation of business look beyond borders to scale, they must navigate complex and volatile geopolitical and economic conditions, and crucially, evolving regulatory frameworks, noting that this has created a fragmented operating environment for fast-scaling companies operating on a global stage.
Donovan emphasized that as they plot out their roadmap for growth, where to incorporate their businesses has become critical to how they navigate this complex web, and how they balance credibility and security with the ability to innovate at pace.
She said given this, it is critical to understand the needs of this new generation of business, and how they are evolving. One thing is crystal clear, IFCs have a pivotal role to play and the BVI is leading a wave of innovation. The BVI Finance CEO believes as businesses within the global fintech sector increasingly seek to incorporate in jurisdictions with the expertise, infrastructure and regulatory clarity, IFCs will remain critical to the industry’s transformation and global growth.”