But pre-emptively drawing in the reins in the name of financial stability could harm innovation and prevent fintechs from growing. We certainly must continue monitoring developments closely and adjust regulation when and where needed to ensure that financial services remain safe and sound.
But competition – to refer to the Austrian economist Friedrich August von Hayek – is a discovery procedure10, and it is up to the markets’ verdict which product or service is the optimal solution. Legislation and regulation should therefore ensure a level playing field for all market players, incumbent´s and new entrants alike.