Check out Warren Lorenz’s (Managing Principal of TechMeetsTrader) comments about the matter in Forbes.
Regulation and compliance within online banking are crucial for consumers. For example, becoming a member of the Federal Deposit Insurance Corporation (FDIC) helps ensure the validity of various institutions and protect customers from a banks potential failure. Required under the law, banks are also required to protect their customer’s online privacy and against fraudulent uses of customer accounts.
If a bank does make a payment based on fraudulent authorizations, then the banks are held liable. Without regulations like these, banking customers would lose trust with various financial institutions, causing deposits to decrease, which would affect lending availabilities and ultimately consumer spending. These are core pillars for the financial health of any economy.”