Exploring Financial Service Innovations: Socioeconomic and Regulatory Concerns

The potential opportunities for financial services innovations are enormous. Like a double-edged sword, though society desires the convenience, ease, and speed of financial innovation, the threats are always there. This chapter explores socioeconomic and regulatory concerns in financial service innovations, including consumer privacy and protection, cybersecurity, financial stability and safety. Addressing both social and economic concerns require deliberate action including designing a security architecture that serves as a surveillance tool to monitor horizon issues either positive or negative that each innovation brings. Additionally, the chapter discusses effective management of regulation concerns by balancing the need for financial services innovation and the desire for the financial systems’ safety and stability. The chapter concludes by exploring possible collaboration mechanisms for regulators and financial service stakeholders for the common good.