How Regulatory Sandboxes are Shaping Fintech in Asia
In this episode of our series on financial technology, we sat down with Kate Lauer, an expert in microfinance, financial inclusion and global financial regulation. At the time of this interview Kate was a senior policy advisor at CGAP, where she was researching the impact of regulatory sandboxes on fintech and financial inclusion. Kate recently became the Head of Global Regulatory Strategy at PayPal.
Some of the key takeaways from our conversation with Kate include:
- Regulatory sandboxes enable two-way learning. Fintech companies can become familiar with regulation while regulators learn about emerging technologies.
- Creating a level platform for fintech companies to compete, while also mitigating risks, is one of the primary challenges facing regulators.
- There are substantial differences in the structure of Asian regulatory sandboxes.
- Asia faces an immense financial inclusion problem, but governments in the region are undertaking some of the most interesting policies to tackle the challenge.
- Bringing people into the formal financial system involves complicated issues of taxation and privacy.