Survey: Fintech Companies Most Worried About Regulations
- The booming industry is concerned about regulatory compliance and changing consumer behavior
A survey conducted by Silicon Valley Bank (SVB) among Fintech Fintech Financial Technology (fintech) is defined as ay technology that is geared towards automating and enhancing the delivery and application of financial services. The origin of the term fintechs can be traced back to the 1990s where it was primarily used as a back-end system technology for renowned financial institutions. However, it has since grown outside the business sector with an increased focus upon consumer services.What Purpose Do Fintechs Serve?The main purpose of fintechs would be to suppl Financial Technology (fintech) is defined as ay technology that is geared towards automating and enhancing the delivery and application of financial services. The origin of the term fintechs can be traced back to the 1990s where it was primarily used as a back-end system technology for renowned financial institutions. However, it has since grown outside the business sector with an increased focus upon consumer services.What Purpose Do Fintechs Serve?The main purpose of fintechs would be to suppl Read this Term startups and investors in the industry has revealed that the biggest challenge they see for the near future are regulatory hurdles, the bank said in a press release.
Mistrust of Technology Also an Issue
As many as 43 percent of the 101 respondents surveyed during SVB’s Fintech Mashup event said that regulatory changes were the most difficult to cope with, a runaway number-one problem ahead of companies’ reluctance to adopt new technologies, cited by 24 percent of respondents. The number-three biggest challenge for the fintech industry was seen to be changing consumer behavior, with 18 percent being worried about it, followed by access to funding, noted by 15 percent of respondents as a challenge.
It’s interesting, however, that the same survey found the financial technology sector is sufficiently funded for the moment, with 55 percent concurring on this, and 17 percent actually of the opinion that the industry is overfunded.
Infrastructure carries greatest disruptive potential
With regard to the biggest opportunities in this playing field, 24 percent of respondents said that infrastructure, including APIs and Blockchain Blockchain Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned.) In this sense, blockchain is immune to the manipulation of data making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tampe Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned.) In this sense, blockchain is immune to the manipulation of data making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tampe Read this Term, had the greatest disruptive potential, following payment systems, with 23 percent picking it for its disruptive potential, insurance and alternative lending, selected by 20 percent of respondents each.
All in the Name of Quality Services
Commenting on the findings of the survey, SVB’s Chief Digital Officer Bruce Wallace said: "As innovators continue to redefine innovative operating models across the financial services sector, it is important to us to help our clients navigate challenges as they identify opportunities to improve financial services for consumers and businesses."
Echoing the major concerns of banks and other financial service providers, Wallace added that an effective regulatory and compliance strategy is of vital importance for their success. This seems to be a fact that regulators are also starting to realize. The latest development in this respect comes from Europe, where the authorities are considering a delayed implementation of the comprehensive financial markets reform MiFID II.
A survey conducted by Silicon Valley Bank (SVB) among Fintech Fintech Financial Technology (fintech) is defined as ay technology that is geared towards automating and enhancing the delivery and application of financial services. The origin of the term fintechs can be traced back to the 1990s where it was primarily used as a back-end system technology for renowned financial institutions. However, it has since grown outside the business sector with an increased focus upon consumer services.What Purpose Do Fintechs Serve?The main purpose of fintechs would be to suppl Financial Technology (fintech) is defined as ay technology that is geared towards automating and enhancing the delivery and application of financial services. The origin of the term fintechs can be traced back to the 1990s where it was primarily used as a back-end system technology for renowned financial institutions. However, it has since grown outside the business sector with an increased focus upon consumer services.What Purpose Do Fintechs Serve?The main purpose of fintechs would be to suppl Read this Term startups and investors in the industry has revealed that the biggest challenge they see for the near future are regulatory hurdles, the bank said in a press release.
Mistrust of Technology Also an Issue
As many as 43 percent of the 101 respondents surveyed during SVB’s Fintech Mashup event said that regulatory changes were the most difficult to cope with, a runaway number-one problem ahead of companies’ reluctance to adopt new technologies, cited by 24 percent of respondents. The number-three biggest challenge for the fintech industry was seen to be changing consumer behavior, with 18 percent being worried about it, followed by access to funding, noted by 15 percent of respondents as a challenge.
It’s interesting, however, that the same survey found the financial technology sector is sufficiently funded for the moment, with 55 percent concurring on this, and 17 percent actually of the opinion that the industry is overfunded.
Infrastructure carries greatest disruptive potential
With regard to the biggest opportunities in this playing field, 24 percent of respondents said that infrastructure, including APIs and Blockchain Blockchain Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned.) In this sense, blockchain is immune to the manipulation of data making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tampe Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned.) In this sense, blockchain is immune to the manipulation of data making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tampe Read this Term, had the greatest disruptive potential, following payment systems, with 23 percent picking it for its disruptive potential, insurance and alternative lending, selected by 20 percent of respondents each.
All in the Name of Quality Services
Commenting on the findings of the survey, SVB’s Chief Digital Officer Bruce Wallace said: "As innovators continue to redefine innovative operating models across the financial services sector, it is important to us to help our clients navigate challenges as they identify opportunities to improve financial services for consumers and businesses."
Echoing the major concerns of banks and other financial service providers, Wallace added that an effective regulatory and compliance strategy is of vital importance for their success. This seems to be a fact that regulators are also starting to realize. The latest development in this respect comes from Europe, where the authorities are considering a delayed implementation of the comprehensive financial markets reform MiFID II.