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Vibe Coding Will Create the Biggest Fintech Disaster Yet

1 hour ago
2 min read


My friend is running his own startup, and when we started discussing wallets and integrating payments, he casually said:


“I can vibe code this in a day.”



My blood went cold.



If he thinks this after listening to me talk about payments and banking for years, imagine how many millions of other people think exactly the same thing.


There is a reason why we regulate banks and financial institutions!



When you trust any bank or financial institution with your money, that institution has serious legal responsibilities. It must follow strict rules about protecting customer funds, managing risks, preventing financial crime and making sure the money is actually there when you need it.



We already have an industry full of FinTech companies, and let’s be clear: these guys are just selling each other’s services. One gateway connects to another gateway, which connects to another PSP, which connects to yet another provider, and somewhere at the end of this chain, there is actually a regulated financial institution handling the money.



Even if we leave out the scammers (who are already jumping on this opportunity!), we still have thousands of people building financial products without understanding how the financial industry actually works. Yes, they know how to build the technology, but do they understand the financial risks, legal responsibilities and potential damage they could cause?



Now imagine thousands of businesses relying on these platforms to receive customer payments, pay suppliers and process salaries. One platform fails, funds disappear, businesses cannot meet their obligations and suddenly the damage spreads far beyond the original users.



What’s worse, by the time regulators or banking partners discover the problem, people's money might already be gone.



And this is all happening now.



 
 
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