Financial Services Industry Overview

Overview

Financial technology, or FinTech, is reshaping the financial services sector as we know it. And when it comes to banking it all comes down to banking on the future. 

From driving greater competition within the industry to widening access to core financial services for consumers without a basic bank account, FinTech has the potential to deliver many positive outcomes for consumers. 

There are however, a number of risks when it comes to the use of digital technology to deliver financial services. And consumer detriments are emerging from FinTech, including issues around privacy, cybercrime and gaps in regulation. 

As more people make transactions using their phone, tablet or computer. It’s important that we can be sure these payments are secure and consumer rights are fully protected. In some cases the regulation of financial services is struggling to keep up with new developments and in some areas, the level of protection that consumers receive is decided by the provider. 

It’s about ensuring the standard included in the consumer protections that would be expected for traditional services, can be updated for the challenges created by new technology. 

Over time the financial services industry has managed to gain limits on how much consumers would be liable for unauthorised or fraudulent use of their payment systems. As well as secured more transparency in fees sent between countries and gained important safeguards on logging transactions and receipts, with electronic logs being kept available. 

It’s now about ensuring the standard included in the consumer protections that would be expected for traditional services, can be updated for the challenges created by new technology. Especially as mobile financial services become ever more present, especially in developing countries, the pressure for improved protections must maintain.