Why Banks are Apprehensive to Fully Embrace Fintech

Last year, Fintech investment grew 44% to $14.8 billion, aiding the development of digital tools in areas such as mobile payments, money transfer, lending and alternative currencies. So why are incumbent financial institutions apprehensive about jumping in?

The regulatory framework dictating how banks can use emerging technologies is not very well-defined, leaving banks to guess how a regulator will react to their involvement in tech venture. As a result, financial institutions often remain wary about working with young innovative technology companies even when the resulting benefits may be clear. So what next? Many are calling for the Office of the Comptroller to step in and provide clearer guidance which could play a pivotal part in improving banks’ confidence in working with fintech companies.

Source: (AmericanBanker.com) by Stuart Frankel is CEO of Narrative Science 

 

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