New study: industry associations boost fintech ecosystems

However, their role and contribution has been under-researched to date, despite them having been active for several decades.

Industry associations that form part of the global community of digital financial services/fintech industry associations have adopted specific approaches and practices to govern their work, according to the ‘Fintech Associations: Global Approaches and Good Practices Study’.

“Industry associations from both Emerging Market and Developing Economies (EMDEs) and advanced economies have a unique opportunity through this research to learn from each other and benchmark on good practices.” said Sarah Ombija, SSA Regulatory Innovation Lead at Cambridge Centre for Alternative Finance (CCAF). 

“Through this knowledge exchange and benchmarking, they can enhance the effectiveness of their associations which can help them to make a greater impact on the fintech ecosystem,” she added.

Industry associations from both Emerging Market and Developing Economies (EMDEs) and advanced economies have a unique opportunity through this research to learn from each other and benchmark on good practices.

Sarah Ombija, SSA Regulatory Innovation Lead, Cambridge Centre for Alternative Finance (CCAF)

Commonalities and differences across diverse fintech markets highlight global approaches and good practices  

The report sets out global approaches adopted by industry associations as well as lessons learned and good practices.

It provides an evidence base including their:

• objectives
• governance
• funding sources
• membership benefits
• challenges 

It is one of the first reports to systematically analyse industry associations around the world.

The report indicates that advocacy, fostering collaboration and capacity building are prominent objectives for fintech industry associations.

The majority of industry associations engage closely with regulatory authorities in their jurisdiction in order to advocate for fintech/DFS related policy, legislative, and regulatory changes. However, industry associations cite a lack of expertise and differing priorities among regulators as key challenges in this engagement.

Industry associations were found to be facing several operational challenges, the leading ones being those relating to capacity and resource constraints and funding sustainability.

The study concludes by setting out 7 areas of recommended good practice for industry associations.

A mission to advance financial innovation and evidence-based regulation 

CCAF, a research centre at Cambridge Judge Business School, aims to advance and share knowledge that extends research boundaries, promotes sustainable financial innovation, and supports evidence-based regulation.

This is an inaugural study on global approaches and good practices for fintech industry associations can be used as reference material and a tool to strengthen the operations of fintech industry associations, especially those which are more nascent. For more established industry associations, this research provides new insights  on benchmarking and surfaces commonalities and learnings across diverse fintech markets. This report builds on the CCAF’s previously published fintech industry benchmarking studies.

“In line with CCAF’s core mission and purpose, we hope that through the insights from this study, the global community of industry associations will gain important insights from their peers’ experiences and approaches, as outlined in this study, fostering greater engagement that enhances inter-association collaboration and regulatory engagement, and informs evidence-based decision-making,” said Bryan Zhang, Founder & Executive Director of CCAF.

In line with CCAF’s core mission and purpose, we hope that through the insights from this study, the global community of industry associations will gain important insights from their peers’ experiences and approaches, as outlined in this study, fostering greater engagement that enhances inter-association collaboration and regulatory engagement, and informs evidence-based decision-making.

Bryan Zhang, Founder & Executive Director of the Cambridge Centre for Alternative Finance