Canada`s largest securities regulator has stated in a white paper that open access data is fundamental for FinTech`s development.The Ontario Secur
Canada`s largest securities regulator has stated in a white paper that open access data is fundamental for FinTech`s development.
The Ontario Securities Commission (OSC) paper was presented at a “hackathon” that discussed new financial technology solutions to old problems such as regulatory processes, identity authentication and transparency, wrote Reuters (reuters.com).
Blockchain can potentially solve important problems in an open and scalable way, said Pat Chaukos, chief of OSC LaunchPad, a regulatory “sandbox” created to support innovation, in an interview with Reuters.
“You need to have the open-access data before you can get to the innovation.”, Chaukos added.
Open data can eliminate duplication and streamline manual regulatory processes. In this way, sectors like auditing and oversight may be improved, according to the paper as quoted in Reuters.
One example may be given with the European Union`s Payment Services Directive 2 (PSD2) that is to come into effect in 2018. It says that a third party can access banking data with customer`s permission, explained Reuters. The publication commented that the idea is seen as potentially transformative for the banking industry.
“We’re going to support the facility of access to data. … It is very much a live discussion for all regulators, and I would actually even say for government.”, said Chaukos.
However, banks have called for tighter regulation on financial technology because of its potential to threaten the stability of the banking sector, as cryptocoinnews.com explained. Therefore, FinTech companies fear that banks will delay response times to access requests, stated the publication.
“The challenge for policymakers is to ensure that fintech develops in a way that maximizes the opportunities and minimizes the risks for society.”, said Mark Carney, governor of the Bank of England and chair of the Financial Stability Board (FSM).