Convergence in Financial Systems: Fintech, Big Data, and Regulatory Standards

The chapter considers how financial systems are converging with respect to financial service players, big data, and regulations. The role of influential players such as FinTech, Neo-Banks, Big Tech, and Big retailers is increasingly important. These new players are flexing muscle with the established financial institutions to win customers’ minds and market share. The days of holding and keeping consumer data in a silo are gone as technology has made data mining of this big data a veritable source of service and product innovation through optimization. On the regulation side, the regulatory environment is becoming more permissible allowing for increased collaboration and convergence between the market and the regulators to safeguard the soundness of the financial system. This convergence is, however, without its own challenges because attaining and sustaining coordinated uniform global financial regulation are ongoing efforts that require careful consideration. Meanwhile, achieving financial inclusion and sustainable financial environment are hinged on a uniform financial regulation standard.