Financial Regulation – good or bad?
Surely the whole reason for some of these innovative solutions are to reduce red tape, streamline processes and make transacting more ‘transparent’, safer, more secure and faster. Similarly, we all know that some of these technologies have been taken on by some of the shadier adopters. The role of AML, KYC & KYB is of greater importance now more than ever. But, read the news or articles and almost every day there is an announcement of a traditional embracing the digital.
So if these technologies do what they say they do – do we really need regulation?
My perspective – YES – well right now yes, maybe later that will change.
Why? Until there is an agreed governance, that cannot be manipulated, we need an oversight. There needs to be a way to safe guard those who are vulnerable, perhaps not financially savvy, or digitally fluent. Right now, this is the role of Regulation. Is Regulation easy? No, should it be? No. Should Regulators be open to embracing new technology ? Yes.
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Regulation should be challenging enough to ensure serious solutions are vetted, but Regulators should also be open to updating their rules and processes to include the role of new technology and processes in FinTech. There should be a form of happy marriage – respect, open conversation. Not a domestic feud, with fear of saying the wrong thing looming over everyone. Consultations should be used to drive open conversation, be simplified to ensure innovators will come to the table and provide perspectives.
FinTech has great opportunity, innovators have some AMAZING solutions and these can be realised by a partnership and open conversation with the Regulators.
