Regulatory Challenges and Mitigation for Account Services Offered by FinTech

Abstract

With an innovation to offer in product & services in the Banking and Financial Services Industry, FinTech has received both attention from investors and regulatory bodies across globe. With a primary objective to improve financial inclusion for unbanked population in emerging economies through mobile devices, Fintech have become new commercial entities that promise to deliver millennium goals of World Bank and G20 nations. The availability of huge user data due to use of mobile devices and its use to generate sales of financial products, FinTech companies and solutions are constantly changing and are unique to each Fintech company. Fintech have devised a business model to provide financial services in the form of payment services, wealth management, crowd funding, lending services, forex services for remittance, digital wallets and digital currencies. The data driven business model, connected customers over mobile phones and several financial services demand new regulatory framework that also protects consumers and prevents systemic risk in the economy. In this paper, we have identified the regulatory guidelines issued for various financial product for customers and challenges Fintech will need to solve to provide innovative services. The paper aims to cover the life cycle of products, scope of innovation for Fintech and methods to meet requirements by regulatory bodies. This paper covers the requirements by products in “Account Services” offered by Banking and Financial Services Industry.