Madis Müller: In the long term security is more important than convenience for financial services
Technological progress does not change the essential nature of financial services, as the fundamental needs of customers remain the same. New technology does, however, allow much more convenient financial services to be developed. Any provider of financial services needs to first make sure that all risks inherent in their services are well managed, so that they can earn the trust of their clients, was the message from Deputy Governor of Eesti Pank Madis Müller to a conference on the future of financial services.
“Regulations need to adapt in order to accommodate the sweeping changes in the financial markets that come from technological change. At the same time we should not allow to the market products that can violate the trust of consumers or investors, as trust is the foundation for the financial sector”, he said.
Competition in the financial market has been strengthened by new Fintech companies and new technological solutions have been introduced by the commercial banks too. Big technology companies like Google, Amazon or Facebook, which have already applied for their first licences in Europe, may also start to compete in the financial market.
Developments in the payments market have been particularly notable. A few years ago, new providers of payment services had the advantage of providing faster payment solutions, but now instant payments are being offered also by traditional banks. Banks and other companies are now working together to bring to the market new services based on instant payments that would make digital wallets as easy to use as a bankcard or cash.
Madis Müller was speaking at a conference on the future of financial services organised by FinanceEstonia, a public-private cluster covering the Estonian financial sector.
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