Monica Eaton, Founder and CEO of Chargebacks911, is calling for more “nuanced accountability” in the fintech space, as noted in a new feature for Global FinTech Series
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The fintech space is seeing rapid growth. However, there are a lot of different moving parts in this field. Not all companies fill the same role, and imposing a regulatory regime that is not responsive to this nuance will create problems for businesses, and well as consumers.
“There is a distinction that needs to be made,” Monica says. “The same set of regulations and constraints should not be universally applied to all software companies that serve fintechs, as many do not move money and play no role in banking activities. Rather, they provide an interface to connect two end-points or a data processing service; examples include AWS, Tableau, and companies similar to DocuSign, which support financial institutions with configurable templates to standardize and streamline data inputs and outputs for the user.”
What the industry needs is a better understanding the lay of the land by regulators. Over time, it’s going to be increasingly important to understand the distinctions present in this highly specialized field.
“Lumping ALL companies that sell solutions supporting a financial service or process or have clients that are FinTech into one group is ‘categorically’ wrong. It is dangerous to the economy and, ultimately, consumers.”