Regulation of Fintech: analysis of data protection provisions aimed at protecting consumers in Kenya

Abstract

There is no single universal definition of financial technology (Fintech). Fintech can be defined as the delivery of monetary solutions using technology or even the integration and use of technology within finance. The use of Fintech has resulted in a shift in the mode of operation of most financial markets leading to increased opportunities and access to financial services. All the benefits of Fintech aside, Fintech has presented a huge challenge for regulators as there has been lack of clarity in regulation of Fintech leading to various risks being occasioned upon consumers. Additionally, most Fintech solutions do not integrate into the existing regulatory framework leading to more exposure of risk to its consumers, particularly posing risk in the protection of consumer data. In addition, there has been numerous attempts to generate certainty within the existing legal framework for regulation of Fintech. This has been argued to be stifling innovation. To this end, this thesis will assess the regulation of Fintech while protecting the interests of the consumer, particularly on data protection and fostering innovation by analyzing the prevailing regulatory framework in Kenya and across the region while drawing lessons from the United Kingdom on the need for the supervisory authorities to have appropriate mechanisms including investigative and corrective powers.