With the Fintech industry grossing over $8 Billion globally. It is interesting to note that venture capital has had more impact in Asia than in the US in the recent years and the reason is policy. The US has many innovative fintech startups that are very interesting to potential investors, however, the political hoops created, seem a little too much for the investors to get behind and so they have been investing in Asia more so than America or Europe.
America’s legal system can be a pain to many foreigners. It not just about what rules, but whose rules. There are federal and state laws and understanding what each state entails can be a daunting task. And another issue is that the government does not make a substantial effort to better communicate and integrate with the innovative fields.
The government has tried to address this with the Financial Service Innovation Act of 2016. However, the traditional financial institutions are notorious for their influence over government policies in the financial sector and this is not a good outlook for Fintech.
The frustrating issue is that people in high positions tend to look out for their best interest and do not see the bigger picture of advancing and moving forward and many times that means change and leaving “traditional” ways of doing things behind. I’m looking forward to the bright future of Fintech, but it seems, others are looking to line their pockets.
Source: https://techcrunch.com/2017/02/16/us-regulatory-environment-threatens-the-rise-of-fintech/