6 ways for FinTechs to build trust: a regulator’s view
By Michelle Chasser and Jim Bulling
In a recent speech on building trust, Australian Securities and Investments Commission Chair, James Shipton, identified 6 key characteristics that financial service providers, including FinTech companies, should have to ensure that the Australian financial system is efficient, resilient and fair. Those characteristics are:
- Financial products that the FinTech company provides do what they say they will and don’t take advantage of consumer biases or lack of knowledge about the product.
- Consumers’ interests are prioritised and put before the FinTech company’s.
- The FinTech company acts with integrity and fairness, not just in compliance with the law but also taking into account community expectations and standards.
- Mistakes and misconduct are quickly identified, reported and rectified.
- Open engagement and cooperation with regulators not only about problems but also in relation to business challenges and risks.
- Being innovative and using technology to improve products and services to deliver better outcomes for consumers. Although by their very nature FinTech companies are innovative and use technology, an effort should be made to constantly improve outcomes for consumers and not adopt a ‘set and forget’ mindset.
How many of these characteristics do you demonstrate?