ABSTRACT
The development of the FinTech ecosystem has been moving at a rapid pace in recent years. However, there are factors contributing towards the hindrance of its growth. Looking into digital financial services (DFS) specifically, we see how regulators play a part in this hindrance, as it can be argued that current regulations are not developing fast enough to meet updated or new innovations. This chapter explores the DFS ecosystem and the issues contributing towards its limitations, notably, the regulator’s role. In order to meet the needs of the FinTech industry today, regulators will need to act swiftly and make room for flexibility to support and encourage innovation. In addition, this chapter will explore the many ways regulators from different regions such as Asia, Africa and South America approach FinTech regulation; provide the necessary space needed to test new innovations; and advocate for FinTech developments. It can be concluded that the desired outcomes can be achieved when regulators and FinTech companies collaborate to meet their shared objective, which is to flourish the FinTech ecosystem and bridge the gap for financial inclusion, all whilst protecting the interests of the public and the country.
