2. Neo-banks and regulators
Using technology to solve problems in finance will always drive innovation. Still, innovations, as we have experienced in the past three/four years, have always moved ahead of regulations.
We have seen innovations come while regulations always have to catch up with them.
I think that cycle is going to continue. For companies, regulators are always going to come and knock at your door based on specific policies and offerings. And because of that, companies will go back, look inwards and look at their values and drive the kind of innovation required to keep the required vision alive.
At Fincra, when regulatory requirements are coming to stiffen some of the convenience we give to our customers, we try to sit down and look at ways to innovate around some of those things.
It’s like a cycle; companies will innovate before the regulators come. APIs were not as popular some years ago as today, and the government probably did not have regulations around them. But when the technology started rolling out and opening up different channels, the government started coming up with regulations.
I see a time when the government and innovators must collaborate because we can’t continue playing cat and mouse games.