Bank 4.0: Banking Everywhere, Never at a Bank

by Brett King

This does require a different compliance approach from the incumbent. In the past the compliance team acted as gatekeepers, preventing the bank from doing projects like this because they would put the bank in breach. But FinTechs don’t work like that. FinTechs will knock on the front door of a regulator, explain that other countries already allow them to implement their technology in their markets and that the technology has resulted in higher levels of customer satisfaction and lower incidents of fraud, and that this might be a justification for allowing a trial of that technology in your home market. This approach is part of the culture shift that incumbents are increasingly having to grapple with. The answer is no longer, “No, the regulator won’t allow that.” It’s not “Let’s talk to the regulator.”