As the FT points out, thinking of innovation as purely a positive thing is probably a little naive. As any police officer will testify, criminals are among the most innovative people on the planet and they are taking advantage of the fast expanding fintech industry.
The fintech sector, predictably, is adamant the industry will be able to offer the solutions to many of these problems. But as Lisa Osofsky, a global regulatory and financial crime compliance consultant at Exiger, explained to me, the challenge remains one of trade-offs. More compliance by and large comes along with additional cost and inconvenience to customers. That in turn puts a heavy burden on those in financial services responsible for policing transactions, especially when they don’t consider themselves police officers.