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As FinTech evolves, can financial services innovation be compliant?
A significant increase in the number of FinTech firms, and corresponding venture capital and corporate investment in the sector, is sure to have a profound impact on the evolution of the financial services industry.
According to the 2017 EY FinTech Adoption Index, FinTech has already been embraced by the mainstream. Across the 20 markets in the EY study, 33% of digitally active consumers are making use of FinTech products and services – with rates varying significantly across different markets and regulatory regimes.
The rise of FinTech requires regulators to understand how to best apply regulatory principles to new settings created by new technologies and business models.
Unless clear guidelines and precedents are provided, or a means for running controlled experiments can be allowed, new applications enabled by FinTech can create regulatory ambiguity.
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