It’s not yet clear how the rise of fintech will disrupt the traditional banking business, but there’s no question that banks, and regulators, must be prepared to adapt, says a consultation report published Thursday by the Basel Committee on Banking Supervision.

The report examines the implications of fintech developments for the financial sector and for banking regulators. According to the report, the impact of fintech on banks and their business models is uncertain.

“While some market observers estimate that between 10%-40% of revenues and 20%-60% of retail banking profits are at risk over the next 10 years, others claim that banks will be able to absorb the new competitors, thereby improving their own efficiency and capabilities,” the report says.

At this point, it may not be clear just how fintech will impact the traditional banking business, but “banks will find it increasingly difficult to maintain their current operating models, given technological change and customer expectations,” the report says. In particular, the future will “increasingly involve a battle for the customer relationship,” it says.

The report also considers the impact of big data, distributed ledger technology, cloud computing, innovative payment services, lending platforms and so-called neo-banks (digital-focused banks).

Against this background, the Basel Committee suggests that banking standards and supervisory expectations “should be adaptive to new innovations, while maintaining appropriate prudential standards,” the report says.

Among other things, the report stresses there is an overarching need to “ensure safety and soundness and high compliance standards without inhibiting beneficial innovation in the banking sector.”

It also highlights the need for: existing regulatory frameworks to accommodate innovative new business models; regulators to adapt their skills to fintechs; and international co-operation among regulators.

Comments on the report are due by Oct. 31.