28/06/2022
What Startups Want Regulators to do | Fintech
Innovation is the lifeblood of any growing, global economy. We believe regulators can play a key role in fostering innovation by supporting startups and entrepreneurs in all stages of development. Here are some things we'd like to see them do.
Regulators play an important role in ensuring the safety and stability of the financial system. But in today's rapidly changing world, they also need to be innovators. New challenges and opportunities are quickly reshaping financial services - from AI to fintech, open platforms and data analytics, to greater customer centricity and workforce shaping - all of which financial institutions need to address while navigating the evolving risk and regulatory landscape.
Startups are the future. They are innovative, they are nimble and they are unafraid to take risks. But in too many countries, startups are being held back by outdated regulations that make it difficult for them to get started and operate. This needs to change. Regulators need to work with governments in order to create an environment that is friendly for startups. The two need to be working together in order for the policies and regulations to be effective. At the moment, it feels like startups are being drowned in paperwork by regulators. Application processes take forever to get answered, and banks are refusing them accounts or turning the processes into an endurance test. This is not an environment that is conducive to innovation and growth. If the government is serious about attracting the best and brightest talents, they need to make sure that their regulatory environment is one that supports, rather than hinders, entrepreneurship.
Work with startups to create a startup-friendly environment.
Regulators can no longer afford to be on the sidelines; they need to be a part of the innovation process. Working closely with the industry, regulators can learn a lot from startups and help promote innovations that improve the safety and efficiency of the financial system. And by embracing new technologies and approaches, regulators can themselves become more effective and efficient in fulfilling their vital role. Regulators should really assess how technology can be used to improve people's lives instead of focusing on legacy systems that need updating.
Why are we waiting for the economy to get better when it can always be improved? Startups need support now so that they may thrive and create jobs.
Things need to change. This means providing incentives such as tax relief and economic grants. But it also means streamlining regulations and being more open to new ideas, making it easier for startups to get bank accounts and access capital. Only by creating an environment that is friendly to startups will we unleash their full potential and ensure that our economies remain competitive in the global marketplace. This would not only save businesses time and money, but it would boost economic growth, create jobs and bring innovative products and services to market more quickly. Is not that what we want?
Don't we need to think more about the future than just the present?
Published by
Maddox R. Burhall
Director of FIN-PAY in UK/EU. | Softpos & Mobile Payment | Strategic Partner
Published • 7h
