Fintechs, Crypto, And Banks Need To Play By The Same Set Of Rules

Customers and investors like fintech companies because they are perceived to be nimble and more capable than banks of delivering a superior customer experience. The impression remains, at least in the mind of some investors, that the fintech entrepreneurs are still able to live by the Facebook founder Mark Zuckerberg’s motto: “Move fast and break things.” Time for those perceptions to end.

When compared to banks the financial technology industry does have some systemic advantages to the participants, but to balance things out there are usually additional risks borne by the customers. To ensure that the United States maintains the world’s leading financial services industry we need to rebalance the distribution of risk so consumers are not stuck with the tab when things go wrong. One way to make that happen is to change the way banks interact with fintech firms, and the regulators seem to be making that happen.