SROs and fintechs: The emerging plot to boost partnerships, shape ecosystem

A critical component of SRO-FT role will be to monitor unethical or dubious practices and take steps to address them

The Reserve Bank of India (RBI) recently recognised the Fintech Association for Consumer Empowerment (FACE) as a self-regulatory organisation for fintech (SRO-FT) and is in the process of examining two other applicants. The fintech ecosystem in India is the third largest in the world, with an estimated 10,000 registered firms which operate across financial services.

 

The relationship between fintechs and incumbent regulated entities (REs) started out as a competition, and has now reset to that of collaboration. Fintechs now act as technology service providers or as an agent institution of the regulated entities, enabling digital delivery of financial services.

 

Given