The FinTech Impact Report: Working through the world’s to-do list #FinTechforPeace But there is still work to do… 03 | ENSURE RESPONSIBLE DIGITAL EVOLUTION 35% of FinTechs are more at risk While the rise of FinTech brings immense promise, it is not without its challenges. It is imperative that the sector of providing illicit channels for engages with Regulators with the purpose of applying regulatory protection to new technologies and services, in a financial flows than large proportionate and agile way that supports innovation. It is encouraging to see evidence of this attention, such as the FCA issuing rules on the advertising of crypto-assets to ensure financial promotions are 94 institutions; they also have a fair, clear and not misleading . greater negative impact92 The goal of FinTech in this context is to ensure that the use of transformative technology serves as a consistent enabler of transparency and trust, and not a potential avenue for misuse. 04 | PARTNER FOR IMPROVED GOVERNANCE AND ACCOUNTABILITY The UK’s Financial Secrecy While 41% of the FinTechs we assessed were shown to have a significant positive impact on the safety, accountability and legitimacy of financial flows, it is also important to note that 35% were identified as being more at risk of providing Score is low; there is a need illicit channels for financial flows than large institutions and having a higher negative impact.95 This 35% is typically for more transparency and driven by early-stage digital payment platforms, including some digital currencies, which have shown vulnerabilities in 93 process and governance – in some cases, entire asset platforms have failed, in others they have been vehicles for accountability 96 ransomware payments with money laundering loopholes seeking to be exploited by criminals . Partnerships have the potential to balance innovation and governance. A FinTech solution can be paired with an established organisation’s well-regulated, process-driven controls to bring an optimum proposition to customers at scale, with creativity, security and compliance. 48