WOCCU Urges Basel Committee To Ensure Fintechs Regulated Like Credit Unions, Banks
The World Council of Credit Unions (WOCCU) has sent a letter to the Basel Committee urging it to mandate that fintech firms be regulated in ways similar to banks and credit unions.
Saying it is supportive of a number of proposals the Basel Committee has already put forth, WOCCU wrote that it wants to see fintechs held to the same data protection regulations as authorized deposit-taking institutions.
WOCCU is further calling on the committee to limit regulatory burdens on credit unions that use fintech companies as service providers by making sure that their rules are proportional to credit unions’ size and complexity.
The letter also calls on the Basel Committee to ensure adequate risk-management processes are in place at fintechs.
Mid this year five Kenyan firms ; MobiTill, TEAM SAFEPA, Greenshoe, Shield Finance and Circle Group Savings and Investment, joined 15 other innovators from across the continent in an awards ceremony held June 21, at Ecobank headquarters in Lome Togo.
The term (FinTech) financial technology can apply to any innovation in how people transact business, from the invention of money to double-entry bookkeeping. Since the internet revolution and the mobile internet revolution, however, financial technology has grown explosively, and fintech, which originally referred to computer technology applied to the back office of banks or trading firms, now describes a broad variety of technological interventions into personal and commercial finance.