Spotlight on emerging tech and financial markets

Technology has been changing borrowing and how people think about money, especially when it comes to complex and risky products within changing market conditions. 

Unlike before, where regulation played catch-up to technology, the Financial Markets Conduct Act is ingrained with innovation in mind, hence leaving scope for innovation as several technology companies will jump on the bandwagon as newer technologies emerge or patents expire. 

This calls for a more intense, proactive risk-based approach for financial service providers.  Even as smart technologies such as bitcoin and distributed ledgers emerge, the general tendency would be to wait for early adopters with sustainable business models, robust risk frameworks and aggressive mind-sets to tread the waters first.  After all – within NZ’s capital markets, we wait with bated breath for robo-advisers and all of the goodies that FinTech offers! 

The fast pace of change for different investment options leads to plenty of questions of concern for investors and regulators.