Banks v. FinTechs?


Banking and financial technology continues to meet over the evolving regulatory regime. Regulators are seeking guidance as they work to catch up with the pace of technology. Of particular significance, representatives of central banks learned more about digital currency technologies at the Federal Reserve’s annual meeting. See this week’s Blockchain Watch.

Banks and startups debate regulation

The U.S. Treasury Department’s Office of the Comptroller of the Currency is moving its study of FinTech regulatory oversight forward, while Markit, a UK-based financial information services company, requested “appropriate space to breathe.” CNBC has more on the regulatory debate.

U.S. community banks lash out at FinTech upstarts

The push from small banking to regulate FinTech newcomers reflects the growing tensions between FinTech firms and small banks who struggle to lure digitally-savvy customers as well as the banks’ belief that unreasonably strict regulations are imposed upon them due to the Financial Crisis, according to the Financial Times. Yes, but if you read the ICBA’s response, you will see that the group is both more forward-looking to collaboration with FinTech partners and more urgent in its request to regulators to resolve the “second-guessing” (PDF) (full disclosure: ICBA is a Canright client).

FinTech v. banks: What if we are both wrong?

“What if, while FinTechs and Banks were distracted by skirmishes, the likes of Apple, Google, AliBaba, etc. were building out their own proposition without any distraction,” Donald Farquhar wrote in a post on LinkedIn. He hit a nerve. The discussion in the comments section gives a wide and enlightening range of opinion on financial-services disruption.

Marketplace lending depends on savers moving from bank deposits

Findings in Deloitte’s new report: calls for regulation will intensify after the Lending Club fallout, consolidation will start in lending marketplaces, and pundits will confirm the disruption of banks once their profits begin to drop. Daily FinTech has the full breakdown.