Banks eyeing fintechs find some rules clearer than others

Singapore

BANKS and financial-technology companies (fintechs) may snuggle up in the years ahead, but banks will not be getting away with doling out riskier loans from tie-ups with less-regulated start-ups.

Existing rules will apply to ensure that there is no room for capital arbitrage when a bank acquires a fintech that provides lending and funding to smaller firms, regulatory and banking sources told The Business Times; but other regulatory questions regarding fintechs may still need clearing up.