Fintech Today
  • About
  • Banking
  • Insurance
  • Resources
    • COVID-19
Subscribe
No Result
View All Result
  • Digital Transformation
  • Customer Experience
  • Cybersecurity & Risk
  • Regulation & Compliance
  • Claims Management
Fintech Today
  • Digital Transformation
  • Customer Experience
  • Cybersecurity & Risk
  • Regulation & Compliance
  • Claims Management
No Result
View All Result
Fintech Today
No Result
View All Result
Home Uncategorized

Fintech Builds Bank Transparency but Creates Challenges for Regulators

by Chelsea Barone
June 12, 2017
in Uncategorized
Reading Time: 2 mins read
A A
bank transparency
Share on FacebookShare on Twitter

As people grow increasingly reliant on mobile and online solutions, the world of fintech has grown at a breakneck pace. With an industry that’s often perceived as outdated and antiquated, tech leaders are making big moves in finance and capitalizing on its desperate need for updating.

Banks know that they have no choice but to embrace fintech’s influence, but according to a recent Reuters article, financial regulators foresee challenges with decentralization and regulation compliance. Bora Yagiz from Reuters explains, “Despite its benefits, however, fintech’s decentralized model is also making it harder for regulators to understand its various components, and to design adequate rules because they have traditionally been dealing with central hubs of activities.”

So with the ever-expanding toolbox that is fintech, regulators might see it as a nightmare for compliance and standardization. It does seem like this could be a fleeting challenge though, especially as fintech becomes more deeply engrained in banking culture and more agile standards are developed.

As far as banks are concerned, the consumer benefits of fintech solutions arguably should outweigh the challenges for regulators, specifically with regards to transparency. By adopting cutting-edge fintech platforms, banking becomes a less stressful and more intuitive experience for consumers. Because their banking experience is more transparent and more direct lines of communication are opened with their bank, customers are more likely to build brand loyalty.

The significance of transparency cannot be stressed enough, especially following the financial crisis of 2008. Even with the crisis taking place nearly a decade ago, banks are still struggling to regain the trust of their customers, millennials in particular. Transparency and authenticity are values that millennials especially look for in a brand and with them as the dominating demographic in the workforce, this makes their preferences a priority.

Because of their ability to streamline communication, fintech leaders could be positioned as champions for transparency. Banks would be wise to adopt both the solutions that build a bridge between them and their customers.

Tags: BankBrand LoyaltyFinancial Crisis of 2008FintechMillennialsReutersTransparency

RELATED POSTS

Contributed Articles

Leading Financial Apps Are Building Brand Success Amidst Financial Fears

October 10, 2022
Contributed Articles

Matching Buyers and Sellers in M&A

April 13, 2022
Contributed Articles

How Payment Service Providers Can Capitalize on Today’s Digital Payments Trends

February 24, 2022

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

TRENDING NOW

  • Who’s Driving Digital Transformation for Banks and Financial Institutions?

    Who’s Driving Digital Transformation for Banks and Financial Institutions?

    499 shares
    Share 200 Tweet 125
  • With a Virtual CISO, Financial Services Institutions Can Upgrade Their Security Posture

    496 shares
    Share 198 Tweet 124
  • Arizona’s Motor Vehicles Department (MVD) Makes Payment Offerings More Accessible

    645 shares
    Share 258 Tweet 161
  • Selling Life Insurance Policies Via Vending Machines is the Ultimate Form of Customer Convenience

    554 shares
    Share 222 Tweet 139
  • Email Phishing and Spam Protection Help Financial Services Institutions Build Trust and Credibility with Customers

    506 shares
    Share 202 Tweet 127

CONNECT WITH US

Advertisement Banner Ad Advertisement Banner Ad Advertisement Banner Ad
Advertisement Banner Advertisement Banner Advertisement Banner

BECOME AN INSIDER

Get Financial Technology Today news and updates in your inbox.

Strategic Communications Group is a digital media company that helps business-to-business marketers drive customer demand through content marketing, content syndication, and lead identification.

Related Communities

Future Healthcare Today
Government Technology Insider
Modern Marketing Today
Retail Technology Insider
Today’s Modern Educator

Quick Links

  • Home
  • About
  • Contact Us

Become a Sponsor

Financial Technology Today offers content and advertising sponsorships to leading technology solution and service providers. Interested in becoming a sponsor? Contact us!

© 2023 Strategic Communications Group, Inc.
Privacy Policy      |      Terms of Service

No Result
View All Result
  • Home
  • About
  • Banking
  • Insurance
  • Categories
    • Digital Transformation
    • Customer Experience
    • Cybersecurity & Risk
    • Regulation & Compliance
    • Claims Management
  • Contact Us