The "bridge" aims to help UK fintech firms reach the Asian market and expand to Singapore, and help Singapore firms bring ideas to the UK.

The Monetary Authority of Singapore and the UK's Financial Conduct Authority have signed a cooperation agreement to allow financial technology firms in the two countries better access to each other's markets.

The agreement, signed last week, will enable the two regulators to refer fintech firms to their counterparts across the globe. The FCA and MAS will also share information on financial services innovation in their respective markets.

The deal fits within a booming fintech trend that has seen a wave of banks set up innovation labs to stay competitive. Recent examples include UK-listed Standard Chartered, with a lab in Singapore, and Deutsche Bank, with labs in Berlin, London and Silicon Valley.

Last year, the UK fintech sector had a workforce of over 60,000 employees and generated £6.6 billion ($9.5 billion) in revenue, according to HM Treasury. Meanwhile, in the Asia-Pacific region, investments more than quadrupled to $4.3 billion, according to data from Accenture.

“This [fintech bridge] will help innovative firms from Singapore that want to bring new ideas to the UK, helping the FCA fulfil our objective of promoting competition in the interests of consumers. At the same time, this agreement will give those British firms with new ideas who want to expand into Singapore support, making them potentially more sustainable challengers in the UK,” the FCA's director of strategy and competition, Christopher Woolard, said in a statement.

“Singapore’s vibrant fintech ecosystem is well-positioned to serve the Asian market, the fastest growing region in the world. The agreement between the Monetary Authority of Singapore and the Financial Conduct Authority will also create opportunities for Singapore-based companies to grow and scale into the UK market,” added Jacqueline Loh, deputy managing director of the MAS.