If 2015 was the year where financial technology startup funding hit its peak, 2016 might be the year that regulators scared investors away.
Regulatory oversight of fintech startups is tightening, according to a report from PwC, and it's a growing concern for industry CEOs. PwC noted that 86 percent of financial services CEOs are worried about the impact of being too heavily regulated, and notes that the chorus of voices in Washington talking about fintech concerns is growing.
"The twin pillars of financial services regulation in the U.S. are safety and soundness and consumer protection," said Haskell Garfinkel, fintech co-lead with PwC. "Regulators are trying to balance these mandates with the flood of innovation occurring on the periphery of the regulated industry."