Regulation technology, a branch underfinance technology, is largely underrated. Banks frequently get fined billions due to regulatory misconduct. Regtech uses AI and cloud technology to ensure ease of compliance to regulations. Furthermore, regtech has the potential to streamline fintech integration into new markets and achieve greater accuracy in error checking.
Val Jihsuan has indicated her plans to expand PolicyPal into other Asian countries. She believes in the importance of working closely with various stakeholders to grow her company. As part of MAS Fintech Regulatory Sandbox, she has shared some observations. Firstly, she observed startups leading in fintech as compared to financial institutions with a ‘start up culture’. This is largely due to startup’s adoption of the lean startup methodology, a methodology that adapts and customise solutions for consumers. Secondly, collaboration between various companies were common. These companies include but are not limited to startups, financial institutions, insurance companies and consulting companies. The various companies were chosen so as to leverage on each other strengths.
Robo-advice are seen as a low cost way to deliver customised information and answers to consumers. A study by Accenture suggests that 74% consumers are willing to receive computer-generated advice. However, many respondents stated that human interaction are able to serve consumers’ more complex problems.
Many fintech services are starting to introduce free checking and tracking of credit score. However, these services are underused with close to a third of millennials not checking their credit score. This may be due to the fact that millennials perceive that credit score ratings are not within their control.
Lloyd and Zhang, panelists in Techcrunch, agreed that fintech is about solving problems rather than introducing new technology. An example given was China’s usage of QR codes to make payments. This technology was not considered the best but it overcame existing problems in the market. The adaptation of QR codes gave China the competitive edge they needed to be a disruptor in the fintech scene.