The necessary the regulation of Fintech

By FINTECH Books Contributor, Laurine Raimond

According to both economics and actors of the Fintech industry, one of the most important components which will define the future of Fintech is the role that regulators, governments and international organisations choose to play.

In fact, they finds themselves in a complex situation, because Fintech holds an enormous potential to improve the financial world, but they need to respect financial stability, prudential regulation, conduct and fairness and competition and development.

Effective financial regulation is clearly crucial to Fintech innovation and the future success of the financial services industry. So government activity can significantly increase the adoption of the Fintech model, or on the contrary reduce their impact on the traditional financial world. Regulation is the most important factor shaping banking ecosystem today. If given the right environment, Fintech could become one of the most powerful tools to support sustainable economic growth.

This moving Fintech landscape creates new challenges for policy makers and regulators, in a period when both renewed economic growth and financial stability are needed. Increased innovation, new sources of competition, and greater productivity are essential ingredients for economic growth, especially in developed and mature economies. But policy makers also need to ensure that this new innovative environment remains safe, robust, and orderly, and operates in a way that both facilitates economic growth and protects the community.

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