Fintech Regulation: Recent Developments And Innovations

The past few years have been boom times for financial technology (fintech), with investments in fintech companies rising from $1.8 billion in 2010 to $19 billion in 2015 according to one study.[1] Will recent regulatory interventions in fintech change this trend?

Innovations by nonbanks in mobile payments, peer-to-peer lending and market infrastructure are putting pressure on banks and other regulated financial institutions to develop similar capabilities. The industry is concerned that excessive barriers to innovation risk depriving consumers of valuable financial services or pushing financial activity into unregulated corners of the market, and regulators are increasingly weighing how to strike that balance.