The swift evolution of the fintech sector has led to it potentially posing a systemic risk to the financial industry, according to the annual Systemic Risk Barometer survey by trade record-keeping and reporting services repository DTCC. In its latest report, released on Tuesday, the firm said that while there are no signs yet of an imminent crisis, “FinTech is increasingly being used as part of broader systems in which banks hold more Most respondents foresaw increased spending to mitigate fintech risks.
The swift evolution of the fintech sector has led to it potentially posing a systemic risk to the financial industry, according to the annual Systemic Risk Barometer survey by trade record-keeping and reporting services repository DTCC. It found 15% of respondents saw fintech as a source of financial sector risk, despite the industry showing great promise, while one survey participant warned that regulators would need to "enhance their oversight capabilities". Most respondents foresaw increased spending to mitigate fintech risks.