THE BIG QUESTION :

Is governance blocking fintech ’ s growth ?

F ew would dispute that compliance and regulation are necessary for modern fintech ; the long-term well-being of customers , businesses , and , ultimately , society all depend on robust governance . Yet , as fintech becomes gradually more established and the digital arenas within which it operates become more broadly understood , could factors meant to protect a company actually impede its development ? Fintech is achieving feats previously inconceivable for traditional finance , but this strength has the potential to become a weakness : new technologies and operating models take time to understand . If the sector ’ s growth continues at its present rate , or even accelerates , will regulators implement complex new legislation or simply introduce ‘ blanket ’ rules ? The latter tangibly fails to accommodate the disruptive ( i . e . unprecedented ) element of fintech , while the former risks alienating those too cautious to navigate inhibitive webs of regulation .