Fintech: A global approach to regulation could signal bad news for fintech startups


A global approach could signal bad news for fintech startups if regulation and categorisation of fintechs is excessively wide-ranging.

Fintech categories that are grouped as high risk could be subject to substantial regulation and the distinctions in business models may be ignored.

This could imply that some areas may be subdued globally, while others may prosper.

A global approach could signal bad news for fintechs

According to a survey by PwC in 2015, 43% of global fintech respondents were certain that regulatory uncertainty would be a challenge when dealing with fintech startups and the fintech industry in general. Whereas, those already established players within the financial industries had a slightly more pessimistic view – 49% of them said it would be a challenge.

Time will tell over the coming months and years, whether or not such disruption to the financial industry will impact regulatory conditions for better or worse.

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