Changes in regulatory landscape is often considered one of the biggest obstacles to fintech industry growth. This is because the fintech industry is rooted in innovation. Innovation that utilizes technologies and processes that are new relative to outdated regulations for older practices.
More so than certain regulations being an issues, the issue lies in ambiguity and confusion of how to regulate. This includes the difficulty of deciding which regulatory bodies should govern, and further, which specific rules and regulations. This is especially an issue because many current rules and regulations are from before mobile phones, E-commerce, and the Internet. In addition, small teams on fintech companies have the challenge of defining complex and broad regulatory models.
A combination of these challenges will push back on fintech growth but with increasing amounts of investment in the industry, the matter while gain more attention and focus. Along with recognizing the financial and efficiency opportunities that fintech provides, many are realizing that the face off between private innovation and regulatory policy will rage on. I believe regulatory bodies will feel the push to improve regulations in order to gain maximum benefits from the innovative industry.
http://blogs.wsj.com/riskandcompliance/2015/11/24/where-fin-tech-is-struggling-with-regulation/
I think regulation would be the biggest challenge the Fintech will face in the future, too. And I guess it would take a long time to have a well-developed regulation for that since it is new and totally different than what we have now.
Yes, I definitely agree that setting new regulations will take a long time to accomplish. The complexity and constant changes in the market will be constant hurdles for regulatory bodies.