DIGITAL BANKING

market impact and traditional role in the financial ecosystem . However , this is starting to shift .”

This shifting landscape suggests that in the future , we can expect a more level playing field regarding regulatory scrutiny .

The current disparity creates challenges , particularly in the context of partnerships between banks and non-bank entities . Samar Pratt points out : “ Banks , traditionally more heavily regulated , are often required to shoulder the regulatory burden , particularly when engaging with third-party providers .

“ This can include ensuring that fintech companies or other non-bank entities comply with stringent regulations , even if these third parties operate under a lighter regulatory framework .” While banks have become accustomed to heavy regulation , the broader financial digital ecosystem presents new challenges .

Steve Morgan notes : “ Outside of the banks , what makes up the financial digital ecosystem has become kaleidoscopic in its variety and confusion . There have been too many products like BNPL that have slipped out and grown with little to no regulation .”

This rapid proliferation of new financial products and services underscores the need for a more adaptive and comprehensive regulatory approach .

fintechmagazine . com 103