Creating Room for Innovation in the Financial Services Supervision

We didn’t do anything wrong, but somehow we lost. That was the statement of Stephen Elop, CEO of Nokia, to end the press conference when he announced the Microsoft’s acquisition on his company. There was nothing wrong with Nokia when they dominated the sales of mobile phones in the world. However, they were late to learn and innovate, and Nokia was suddenly irrelevant.

In this era, innovation and changes occur quickly, accelerated with internet technology development and mobile devices. E-commerce is stated turning of the traditional retail store. GoJek challenges BlueBird’s stability as a leading transportation provider. The number of magazines and newspapers that stopped publishing the printed edition has already been uncounted because pressure by the online media.

The financial industry maybe more resilient than the other industries. Still, they face the same challenger as the other industries: the consumer wants a practical and fast service and if possible, cheaper. The financial service institution has to understand this and start innovate. Or they will be a dinosaur, irrelevant both by smaller startup or others financial service institutions.

During this competition, a supervisor institution concerns to ensure customer protection, financial system integrity (related to money laundering and terrorism funding), and economic stability. This regulatory and supervisory action has to be done while maintaining innovation room for financial service. This can be done by confirming the fair rules (same level playing field) and policy toward innovation between the existing financial institution and the fintech startup. Lanjutkan membaca