FINTECH: DATA SHARING REGULATION IS KEY TO FINANCIAL INSTITUTIONS SURVIVAL.

A global rating agency Fitch rating in a recent survey says that the ability to harness “big data” and accelerate digitalization and automation will be a key determinant of long term winners and losers in the financial sector.

Fintechs and incumbent banks could benefit should global regulators and competition authorities force large technology companies (Big Tech) to share data to address competition concerns.

New regulations could support continued innovation for the financial sectors by allowing sourced data to be used across silos and enhancing credit data bureaus with the insight gained through machine learning technology. Beyond the payment sphere, Fitch believes that Fintech’s and Big Tech’s footprints may become economically more significant within emerging markets regions such as parts of Latin America ,Africa, and Asia, where centralized credit scoring bureau data tends to be less robust, regulations are less stringent and large under banked populations reside.

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