This is why the main focus of today’s session is on financial innovation, the rise of FinTechs, and the regulatory challenges that regulators are facing in this new era.
In the context of this costbenefit framework, we can anticipate that when the costs of prevention fall or fraud begins to increase, banks, businesses, and consumers, will react by implementing or demanding changes in policies, business processes, and technology to address risk. This dynamic balancing process is part of the ongoing development of the payments system.