The global payments landscape is changing, and advances in technology, coupled with adapting consumer behaviours, mean that the regulatory standards which govern our industry and ensure the integrity of financial markets need to remain strong while accommodating such change.
One method of ensuring regulators maintain robust standards while embracing technology within their approach is to encourage the adoption of automation into supervisory regimes, as proposed in a recent Celent report. The financial industry would certainly benefit from wider automation, which will not only save considerable time and resource for FinTech companies, but will ensure that useful information is provided to regulatory authorities in a standardised format.
Such an approach should be implemented together with direct engagement from the financial sector. The usefulness of establishing a connection with industry should not be underestimated, particularly when it comes to understanding the business drivers behind new technology trends and striking the right balance between fostering innovation while upholding regulation.
It’s clear however that the rapid pace of innovation impacts both consumer behaviour and the manner in which business is conducted today. The effect of technology on business conduct should logically extend to the manner in which businesses comply with financial regulation.
The time for automation has arrived - regulators should embrace it, or risk being left behind those who do.
John Fernandez, Legal Counsel, PPRO Group