Whirlwind times in fintech
Cryptocurrency has been knocked about the ring with the collapse of the FTX crypto exchange rippling through the market.
Despite the inherent security, safety and privacy values of blockchain, distributed ledger and crypto technologies, speculative behaviour and high profile failures severely undermine trust and risk tarnishing the entire sector.
After FTX’s fall from grace, FinTechNZ executive director Jason Roberts has discussed the future of crypto with CentraPay. They looked at the importance of supporting new forms of finance and the critical need for the industry to self-regulate.
Without this, serious damage occurs. It is clear the vast majority of sector leaders see better regulation, improved practice and consumer safety as essential pre-requisites to maintain trust. New forms of money still require a trust framework. Regulation is sought and it’s coming, but it still needs shaping.
In other fintech developments, from greenwashing to consumer trust, Aotearoa needs to identify the issues and address them to enable a new generation of trusted and sustainable finance systems.
Roberts says it is critical New Zealand shows how our fintech solutions area already helping companies specialising in these areas, offering examples like CoGo and Arcanum, and that the sub-sector’s success is evidence-based.
Mandatory climate-related financial disclosures legislation is a great example of regulation driving change and fintechs rising to the challange.
As the fintech sector gears up for consumer data legislation in New Zealand, focusing on the banks in the first instance, this needs to be done correctly.
Banks around the world have typically been slow but on the other hand, it is essential to learn from overseas experience, Roberts says.
The most critical factor in building trust is privacy and data security, says Roberts. Internationally there have been instances of data loss, the consequential fear of organisations on liability and regulators now stepping in on industry behaviour.
“In NZ we do have the opportunity to learn from overseas and create tech that’s the right size and right shape for all Kiwis. Pace is also a concern and the need for governance over the API standards.”
Financial technology in New Zealand is challenging traditional financial models but building and maintaining trust is critical, across applications, platforms and mainstream providers.
Any new model needs to develop inherent trust to ensure its end customers are safe, secure and empowered to benefit from great service experiences.
Looking for more insight into global opportunities for NZ FinTech? Don’t miss the Hui on 28 February 2023.