Home 24-7 Whirlwind times in the changing fintech world

Whirlwind times in the changing fintech world

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Source: MakeLemonade.nz

Te Whanganui-a-Tara – Cryptocurrency has been knocked about the ring with the collapse of FTX crypto exchange rippling through the market.

Despite the inherent security, safety and privacy values of blockchain, distributed ledger and crypto technologies, the very human speculative behaviour and high profile failures severely undermine trust as investors and actually risk tarnishing the entire sector.

After FTX’s fall from grace, FinTechNZ executive director Jason Roberts has discussed the crypto future 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 we can show fintech can help with companies specialising in this domain, such as ESP, CoGo and Archanum, and that its success is evidence-based and proven.

Mandatory climate-related financial disclosures legislation is a great example of regulation driving change and  fintechs rising to the challange.

As the fintech 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.

Critical ingredients in trust and customer experience relate to privacy and data security, he says. 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 the right size, right shape for all Kiwi’s. Pace is also a concern and the need for governance over the API standards.”

Financial technology in New Zealand challenging traditional financial models but building and maintaining trust is essential across the sector from all providers.

Trust is critical, no matter the experience across applications, platforms, mainstream providers or how we navigate partnerships.

Any new model needs to develop inherent trust to ensure its end customers are safe, secure and easily enabled to have great experiences.