According to a recent Depository Trust & Clearing Corp (DTCC) survey conducted earlier this year, 15% of respondents felt fintech could pose a risk to global financial stability. Well, yeah, guys. That’s why we publish this little newsletter, so our readers can see what is coming down the pike and get ahead of it. Yes, fintech in its many forms has the power to transform everything we know about the world of finance and it will. The onus is for government and commerce to embrace the changes and get in front of them – not react. Keep reading FintekNews, folks. We’ll keep you informed of what’s coming next.
“The global economy remains in a fragile state. The ongoing uncertainties of Brexit may hang low in the minds of business leaders with European footprints. For those in Asia, North Korea’s on-going weapons tests coupled with perceived expansionism by China are not helping ease the concerns of executives in the financial services industry.
One respondent to the annual DTCC Systemic Risk Barometer Survey (completed in Q3 2017) cited that ‘firms are making investments in safeguarding system access and part of that investment is the consideration of cyber insurance with their portfolio of risk mitigation strategies.’
Fintech: a destabilizing factor in 2018?
A new factor in the 2017 survey is Fintech risk reflecting feedback from 15% respondents who viewed Fintechs as having an important impact to the business. While Fintech is generally recognized as holding great promise, these results demonstrate a growing awareness of potential emerging risks, highlighting the need to evaluate both risks and rewards associated with Fintech initiatives.
As one respondent said, ‘The evolution of Fintech has outpaced the ability of the financial services industry to adapt to such rapid changes. The risks potentially posed by Fintech could have substantial impacts on the financial services industry and regulators will need to enhance their oversight capabilities for this emerging area.’…”
Full Story at EnterpriseInnovation.net