Overview
Arvin Abraham, attorney at law firm McDermott Will & Emery, said:
“Coronavirus has had a clear impact on the pace of digitization and the adoption of fintech solutions, with the pandemic spurring increased use of digital payments, remittances, banking services and savings platforms. While the pandemic has pushed regulators to facilitate the adoption of fintech services, it is also highlighting emerging risks in the financial system and a lack of appropriate supervisory mechanisms in this nascent area. Regulators will need to quickly develop skillsets and frameworks to cope with the corresponding increase in digital risks, including in the areas of cyber-security and digital-fraud, which give rise to new consumer protection concerns. We would expect regulators to increase their attention to this area in the months and years ahead, with an enhanced focus on rule-making to give appropriate guidance on these novel issues and also for the hiring of additional digitization experts to complement regulatory teams.”