The article discusses the differences between fintech growth in the US and Europe, highlighting that Europe has seen more success due to a more collaborative relationship between regulators and innovators. Here are some key points:
Key Points:
- Regulatory environment: Europe’s regulatory framework is more aligned with fintech innovation, allowing companies like Monzo, N26, and Revolut to thrive.
- Collaboration between regulators and innovators: European fintechs engage early and often with regulators, ensuring that all parties are aligned on what’s best for consumers.
- Fintech growth in Europe: European fintech investments have returned more than twice as much value as any other tech category since 2013.
- Regulatory oversight in the US: The US has a fragmented and slow-moving regulatory system, hindering fintech innovation.
- Examples of successful collaborations: Varo Money is working with the OCC for a national bank charter, while Acorns has met with policymakers to educate them on micro-investing products.
Takeaways:
- Fintech entrepreneurs in the US must engage early and often with regulators to ensure that regulations are aligned with innovation.
- A collaborative relationship between regulators and innovators is crucial for fintech growth.
- The US regulatory system needs to be modernized and upgraded to support fintech innovation.
Implications:
- Fintech companies in the US may face increased scrutiny if they fail to engage with regulators or circumvent regulations altogether.
- Companies that prioritize collaboration with regulators will have a competitive advantage in the market.
- The regulatory environment in the US needs to be reformed to support fintech growth and innovation.
