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Looking at why the FCA is actively encouraging disruptive innovation; in effect to harness the power of innovation to the benefit of consumers.
When asked to name the barriers to innovation it’s a reasonable bet that in some industries constraints by regulators will come fairly high up the list. And that may have been true in the past but nowadays regulators are increasingly seeing the benefits of innovative solutions in delivering customer excellence.
Take the FCA for example. In a recent speech at the global digital banking conference, Christopher Woolard the FCA’s director of strategy and competition highlighted the regulator’s interest in innovation as being “primarily linked to our duty to promote competition in the interests of consumers.” In fact, Mr Woolard revealed that since the launch Project Innovate, the FCA has offered direct support to over 250 firms which in the eyes of the FCA have presented ‘genuinely innovative ideas likely to have customer benefit.’
The fact is that whilst disruptive innovation can pose a threat to those organisations which seek to retain the status quo, it can also deliver success to those who are prepared to disrupt the market in the search for outstanding customer solutions. The FCA recognises this and already pushing forward in a bid to introduce innovative solutions into the marketplace. From an ideas sandbox which enables firms to test innovative ideas without being tied down with the minutiae of full regulatory approval through to a TechSprint event which looked to deliver digital solutions this regulator is actively encouraging disruptive innovation; in effect to harness the power of innovation to the benefit of consumers.