What you need to know: This article describes central policy changes in UK, US and Canada. In the United Kingdom, changes in policy increased the amount of banking license grants and applications. They will help increase competition for the benefit of the bank customers. New fintech players took advantage of the regulation changes to launch their operations. In the US, new policies are expected, the OCC has announced that it will adjust the standards to consider the risk profiles, sizes, and business models of the fintech innovators. Using a special purpose vehicle, fintechs might be able to operate across states. Yet, the fintech banks will require a higher minimum capital level.
Why this is important: The world will soon experience big changes in financial services regulation, which is required in order to catch up with technology. New regulations will facilitate the entry of more fintech banks, will should increase innovation and competition.
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