Nearly six dozen CEOs are calling for increased regulation of the FinTech sector in the United Kingdom, Altfi reported.
In a letter, executives of the country’s major FinTech firms from London-based Algbra, the FinTech platform headquartered in London, to Zopa, the British financial services company which offers deposit accounts and credit cards, have called on regulators and the U.K. government to accelerate reforms aimed at better financial regulation.
The signers said regulations must be overhauled in the manner suggested by the Kalifa report last year. The 108-page survey recommended a five-point plan designed to provide regulation guidelines, an investment in skills training, the launch of a an international “Fintech Credential Portfolio” to support global credibility, making it easier to do business, and national connectivity.
“The regulatory rule book requires further updating, and regulators must have the capability and culture in place to allow them to fully embrace innovation while protecting the consumer and financial stability,” the letter said.
In addition, the letter said given the county’s departure from the European Union, FinTechs should seize the chance to write regulatory and capital requirements more proportionate for challenger banks.
In an interview with PYMNTS, Jim McCarthy, president of i2c, a digital banking and payments provider, said there’s a fine line between implementing rules to promote competition and hampering innovation through regulatory myopia. Competition through policy is no easy task, he said, especially when financial services are involved.
Read more: Regulators Walk Fine Line Between Protecting Consumers, Stifling FinTech Innovation
In an opinion piece, Sultan Meghji, the former chief innovation officer at the Federal Deposit Insurance Corp., said existing regulations may not be adequate to deal with the technological challenges of the 21st century.
See also: Former FDIC CIO Pens Stinging Critique of Agency’s Innovation Focus
But the lack of rules may not be the biggest problem as an excess of bureaucracy and willingness by many public officials to adopt changes may be the real problem that federal agencies face.
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NEW PYMNTS DATA: ACCOUNT OPENING AND LOAN SERVICING IN THE DIGITAL ENVIRONMENT
About: Forty-two percent of U.S. consumers are more likely to open accounts with FIs that make it easy to auto-share their banking details during sign-up. The PYMNTS study Account Opening And Loan Servicing In The Digital Environment, surveyed 2,300 consumers to examine how FIs can leverage open banking to engage customers and create a better account opening experience.
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