A day in the life of the gentleman banker was once described by the 3-6-3 rule – accept deposits at three percent, loan money at six percent and tee off at the golf course at 3 p.m. The financial services industry can rightfully state that it has come a long way since then. It has implemented technological innovation and managed risk in a constantly changing economic environment over several decades. The gentleman banker has since evolved into a sophisticated financial risk manager who works within a complex framework of rules and regulations with tens of trillions of dollars of assets under management.
Fintechs have moved at a much faster pace than banks in some areas. They have disrupted the financial services industry with user-centric solutions enabled by technology. These solutions emulate products and services offered by financial institutions. However, these remarkable examples of innovation have largely ignored the elephant in the room – regulation. Read more