Germany\u2019s Central Bank president Jens Weidmann has expressed concerns about the current growth of fintech. He specifically sees it as a threat to current banking and financial industries because the technologies are new. He fears that firms will be overly vulnerable in implementing technology that hasn\u2019t been tested in an economic downturn. He stated that \u201cassessing the risk was impossible without reliable data\u201d (Koranyi, 2017).<\/p>\n
While his concerns about using untested technology is valid, he seems to be missing the point. Financial technology improvements allow for better user access, reduced clearing and settling times, and less reliance on intermediaries. The only way to see how this holds up in the real world is to try it. If Weidmann wants reliable data to assess risk, he needs to let people get data first.<\/p>\n
Additionally, Weidmann is talking about fintech as if it were all one concept. It\u2019s not. There\u2019s blockchain technology; there\u2019s cloud based advances; there\u2019s biometric financial solutions, the list goes on. Each different financial technology should be assessed on its own merits and risks. Not all innovations are good, but we shouldn\u2019t deprive ourselves of opportunity just because of this fact.<\/p>\n
http:\/\/www.reuters.com\/article\/us-fintech-bundesbank-idUSKBN1591LV<\/a><\/p>\n","protected":false},"excerpt":{"rendered":" Germany\u2019s Central Bank president Jens Weidmann has expressed concerns about the current growth of fintech. He specifically sees it as a threat to current banking and financial industries because the technologies are new. He fears that firms will be overly vulnerable in implementing technology that hasn\u2019t been tested in an economic downturn. He stated that … Continue reading Fintech sector needs more regulatory oversight: Bundesbank<\/span><\/a><\/p>\n","protected":false},"author":1807,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"qubely_global_settings":"","qubely_interactions":"","kk_blocks_editor_width":"","_kiokenblocks_attr":"","_kiokenblocks_dimensions":"","footnotes":""},"categories":[1],"tags":[],"class_list":["post-418","post","type-post","status-publish","format-standard","hentry","category-uncategorized"],"gutentor_comment":2,"qubely_featured_image_url":null,"qubely_author":{"display_name":"aarnold","author_link":"https:\/\/blogs.scu.edu\/finis\/author\/aarnold\/"},"qubely_comment":2,"qubely_category":"Uncategorized<\/a>","qubely_excerpt":"Germany\u2019s Central Bank president Jens Weidmann has expressed concerns about the current growth of fintech. He specifically sees it as a threat to current banking and financial industries because the technologies are new. He fears that firms will be overly vulnerable in implementing technology that hasn\u2019t been tested in an economic downturn. He stated that…","post_mailing_queue_ids":[],"_links":{"self":[{"href":"https:\/\/blogs.scu.edu\/finis\/wp-json\/wp\/v2\/posts\/418","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/blogs.scu.edu\/finis\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/blogs.scu.edu\/finis\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/blogs.scu.edu\/finis\/wp-json\/wp\/v2\/users\/1807"}],"replies":[{"embeddable":true,"href":"https:\/\/blogs.scu.edu\/finis\/wp-json\/wp\/v2\/comments?post=418"}],"version-history":[{"count":1,"href":"https:\/\/blogs.scu.edu\/finis\/wp-json\/wp\/v2\/posts\/418\/revisions"}],"predecessor-version":[{"id":419,"href":"https:\/\/blogs.scu.edu\/finis\/wp-json\/wp\/v2\/posts\/418\/revisions\/419"}],"wp:attachment":[{"href":"https:\/\/blogs.scu.edu\/finis\/wp-json\/wp\/v2\/media?parent=418"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/blogs.scu.edu\/finis\/wp-json\/wp\/v2\/categories?post=418"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/blogs.scu.edu\/finis\/wp-json\/wp\/v2\/tags?post=418"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}