The Regulator's Dilemma: Financial Innovation Within a Regulatory Paradigm

Harold Haddad Haytham Yassine

Consumers’ relentless appetite for digital financial services in the era of COVID is forcing banks, financial technology firms (fintechs), and consequently regulators to “up their game.” The financial services industry is poised to deliver innovative digital experiences comparable to Amazon, Apple, and Google while ensuring consumer protection, robust cybersecurity, and personalized costumer service. Digital financial services are opening doors for economic growth. Yet, the sheer number of new entrants, complexity of new technologies, and disruptive business models have many regulators struggling to keep up. What’s needed is a sound regulatory framework coupled with collaboration among regulators, banks, fintechs, and others in the sector—all working together to advance a national fintech agenda.