These new players have also made inroads in the provision of payment services, remittance services and crossborder payments. Moreover, they have the potential to grow very quickly and become large and systemically important financial institutions, raising concerns over financial stability and consumer protection. 26. Faced with such profound changes, the policy makers’ dilemma is more than walking the middle path between innovation and regulation.
The public policy approach here needs to be more comprehensive and holistic, taking into account issues such as financial regulation, competition policy and data privacy regulation. Coordination among various authorities – such as financial regulators, competition authorities and data protection supervisors – becomes critical at this juncture. 27.