The Entrant of FinTech Companies in the Provision of Financial Services: Finance Assignment, SUSS, Singapore

Question

Suggest and discuss some of the steps that regulators are doing to ensure the continued stability of the financial system with the entrant of fintech companies.

Make good use of examples, statistics and events to augment your discussion.

Sub Answer

The entrant of FinTech companies in the provision of financial services has brought benefits and risks. Effective regulations are thus important so that FinTech companies minimise their disruptions to the financial system. As such, regulators have taken some measures to ensure financial stability. This can be classified into regulating FinTech activities, regulating the use of technology, and maintaining FinTech innovations.

Regulating FinTech Activities

There is a need to regulate FinTech activities as it covers a wide range of financial services. Regulations and policies have been placed especially for activities such as payments services and P2P lending.

• For payment services, the Monetary Authority of Singapore (MAS)
• For P2P lending, China regulations
• Cryptoassets

Regulating Use of Technology

• RegTech

Maintaining FinTech Innovations

• Regulatory Sandbox (Singapore)
• Innovation Hubs (UK)
• Accelerators

Conclusion

•  Not an easy task
• Great efforts – mention Bali Fintech Agenda