University Fintech Regulation Report: Risks, Benefits, Challenges

This report provides an overview of regulation within the Fintech industry, examining the risks and benefits associated with Fintech companies. It delves into the regulatory challenges faced by the industry, including issues such as cybersecurity, anti-money laundering, and the balance between innovation and regulation. The report highlights specific issues like remittance payments and the role of central banks, offering insights from a regulatory perspective. The paper also touches upon the importance of maintaining a human touch in an increasingly digital financial landscape. The report concludes by summarizing the key findings and emphasizing the need for effective financial regulations in the Fintech sector.

Running head: REGULATION IN FINTECH
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Regulation in Fintech
Name of the student:
Name of the university:
Author note:

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Executive summary
The paper aims to find the risk and benefits in the Fintech Company and analysing the
challenges faced by the regulators of Fintech Company. The article focuses on the viewpoint of
the regulators in facing regulatory challenges. Lastly, the paper concludes on giving a brief in
some specific issues in the regulations of financial institutions.

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Table of Contents
Introduction......................................................................................................................................3
Discussion........................................................................................................................................3
Risk and benefits in Fintech companies......................................................................................3
Regulatory challenges faced by the Fintech industry..................................................................4
Specific issues..............................................................................................................................4
Conclusion.......................................................................................................................................5
References........................................................................................................................................6

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Introduction
The following paragraphs of the report will discuss the risk and benefits in the Fintech
industry and the main regulatory challenges faced by Fintech industry. The paper will discuss the
specific issues such as anti-money laundering, remittance payments, or central bank backed.
Discussion
Financial regulation is referred to as the rules and regulations that govern the financial
institution like banks, investment companies and brokers. It regulates and provides guidelines for
the financial activities, it conducts regular auditing of financial institutions and investigates
transgressions (Leckow et al. 2017). The Fintech companies are regulated under government
bodies or international non-government bodies. Regulations made in the Fintech company is
done to develop the monopoly powers and to provide market information to the consumers and
create transparency.
Risk and benefits in Fintech companies
The risk beard by the Fintech Company is its capital requirements and licensing the
manual supplement. The Fintech Company faces the operational risk, market risk, legal risk,
criminal use risk, cybersecurity risk, liquidity risk and strategic risk. Rather than facing these
risks the Fintech company also gets benefits such as it provides the ability to new technology to
process data, offers effective solutions in small scale businesses, provides better cash flow in
small scale industry, helps in improving the payment systems, provides fast way of transaction
and helps in successful transitioning of economy (Ryu 2018).

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Regulatory challenges faced by the Fintech industry
The three significant challenges faced by the Fintech industries are Regulations,
cybersecurity and retaining the human touch (Pollari 2016).
Regulations:- The regulators started to lose the restrictions and allow the financial
institutions to operate new ideas and reduce the initial hurdles and this created problems for the
startups (Treleaven 2015).
Cybersecurity:- The Fintech industries face a significant challenge in cyber crimes. The
company exposes the cyber attacks to minimise the risks and keep the client data safe.
Retaining the human touch:- Fintech company gets disrupts in human touch and their
models of operating which seems like dealing with some faceless entity.
From the viewpoint of a regulatory of the Fintech company, it is found that these
challenges faced by the Fintech company disrupt their functions in the financial institutions and
creates chaos and confusion in the industry.
Specific issues
Anti-money laundering refers to as a set of rules and regulations to prevent criminals to
disguise illegal funds and legitimate income.
Remittance payment is referred to as a payment that is sent to somewhere else. To make
payments to the bills in emails from last week is remittances.
The central bank is an institution that manages a digital form of currency and is
established as the money by government laws and regulations

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Conclusion
The above report concludes that the Fintech industry assesses various risks in managing
the financial institutions and also gets benefits from its regulators. The Fintech industry faces
different regulatory challenges that disrupt the industry. The above report discussed the specific
issues of the financial regulations for regulating the Fintech industry.

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References
He, M.D., Leckow, M.R.B., Haksar, M.V., Griffoli, M.T.M., Jenkinson, N., Kashima, M.M.,
Khiaonarong, T., Rochon, M.C. and Tourpe, H., 2017. Fintech and financial services: initial
considerations. International Monetary Fund.
Pollari, I., 2016. The rise of Fintech opportunities and challenges. Jassa, (3), p.15.
Ryu, H.S., 2018, January. Understanding benefit and risk framework of fintech adoption:
comparison of early adopters and late adopters. In Proceedings of the 51st Hawaii International
Conference on System Sciences.
Treleaven, P., 2015. Financial regulation of FinTech. Journal of Financial Perspectives, 3(3).