Regulatory attitudes are promising
The attitude of regulators toward FinTech operations is encouraging as they seem to be balancing the need to provide appropriate consumer protections while also promoting the innovation and choice from which customers benefit. For example, the Office of the Comptroller of the Currency (OCC) in the US has set down an important marker by exploring the possibility of granting FinTechs special purpose bank charters[2]. Regulators in other parts of the world could follow suit, including sandbox initiatives in the UK and Hong Kong. While there has been some pushback from established banks against what they see as special treatment, there is plenty of room for compromise.
Therefore, while the complexities of FS regulatory compliance are taking FinTech into new and unfamiliar territory, it does not need to be an insurmountable hurdle for the market transformation that mobile FS providers are helping to spearhead.
