At the same time, there is the need for these efficiency-inducing new technologies to be incentivised. Clearly, the entity based regulation of banks with its focus on health parameters like capital adequacy, leverage, liquidity or financial integrity requirements like KYC, AML/CFT requires to be adapted to the presence of fintech entities that are not subject to the same regulatory requirements.
The concept of activity based regulation with the basic theme of 'same activity same regulation' has gained currency. The fundamental point is that any entity providing banking services needs to be subject to similar regulation as banks.