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Asian regulators to embrace fintech in 2016
As fintech innovation from both startups and major technology players continue to disrupt the finance sector in 2016, the big issue for next year will be how regulators will get to keeps with a whole slew of financial products coming onto the market, says Deloitte Australia.
The new report — titled Asia Regulatory Themes for 2016 — explains that services and products such as robo-advisories, crowdfunding, and blockchain technology, all potentially fall outside the current regulator rules.
Regulators will likely want to incorporate fintech within the regulatory perimeter to ensure they meet their financial system and institutional stability, market integrity and investor protection objectives.
But it’s a balancing act. For the likes of Australia’s ASIC, and its Asia-Pacific peers, the challenge will be maintaining minimal regulatory burdens on fintech start-ups while still subjecting them to relevant standards, the report adds.
Incumbent providers will be concerned about uneven playing fields and the impact that comparatively high regulatory costs may have on their ability to compete. They will likely argue that asymmetric regulatory treatment could tilt the field in favour of specific cohorts of actors, potentially to the detriment of competition and regulatory objectives.
Photo: Roxanne Tamayo