Publication:
Regulation and Supervision of Fintech: Considerations for EMDE Policymakers

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dc.contributor.authorWorld Bank
dc.date.accessioned2022-04-27T15:51:36Z
dc.date.available2022-04-27T15:51:36Z
dc.date.issued2022
dc.description.abstractFintech is transforming the global financial landscape. It is creating new opportunities to advance financial inclusion and development in Emerging Markets and Developing Economies (EMDEs), but also presents risks that require updated supervision policy frameworks. Fintech encompasses new financial digital products and services enabled by new technologies and policies. Although technology has long played a key role in finance, recent fintech developments are generating disruptive innovation in data collection, processing, and analytics. They are helping to introduce new relationship models and distribution channels that challenge traditional ways of finance, while creating additional risks. While most of these risks are not new, their effects and the way they materialize and spread across the system are not yet fully understood, posing new challenges to regulators and supervisors. For example, operational risk, especially cyber risk, is amplified as increasing numbers of customers access the financial network on a 24 by 7 basis. Likewise, increased reliance by financial firms on third parties for provision of digital services, such as cloud computing, may lead to new forms of systemic risks and concentration on new dominant unregulated players such as big tech firms. This note aims to provide EMDE regulators and supervisors with high-level guidance on how to approach the regulating and supervising of fintech, and more specific advice on a few topics. Preserving the stability, safety, and integrity of the financial system requires increased attention to competition and ensuring a level playing field and to emerging data privacy risks. As a general principle, policy response should be proportionate to risks posed by the fintech activity and its provider. While striking the right balance can be challenging in the absence of global standards, the IMF-World Bank Bali Fintech Agenda (BFA), along with guidance by Standard Setting Bodies, provides a good framework for reference.en
dc.identifierhttp://documents.worldbank.org/curated/en/099735204212215248/P173006033b45702d09522066cbc8338dcb
dc.identifier.doi10.1596/37345
dc.identifier.urihttps://hdl.handle.net/10986/37345
dc.languageEnglish
dc.publisherWashington, DC
dc.rightsCC BY 3.0 IGO
dc.rights.holderWorld Bank
dc.rights.urihttp://creativecommons.org/licenses/by/3.0/igo
dc.subjectFINANCIAL SECTOR INNOVATION
dc.subjectEMERGING MARKETS AND DEVELOPING ECONOMIES (EMDES)
dc.subjectFINTECH
dc.subjectFINANCIAL INCLUSION
dc.subjectFINANCIAL SUPERVISION POLICY
dc.subjectFINANCIAL DATA INNOVATION
dc.subjectDATA SECURITY RISK
dc.subjectCLOUD COMPUTING SECURITY
dc.subjectREGULATION OF FINTECH
dc.subjectDATA PRIVACY RISK
dc.subjectIMF-WORLD BANK BALI FINTECH AGENDA (BFA)
dc.subjectFINTECH FAILURE
dc.subjectIT SECURITY
dc.subjectCRYPTOCURRENCY
dc.titleRegulation and Supervision of Fintechen
dc.title.alternativeFintech and the Future of Finance Flagship Technical Noteen
dc.title.subtitleConsiderations for EMDE Policymakersen
dc.typeTechnical Note
dspace.entity.typePublication
okr.crossref.titleRegulation and Supervision of FintechFintech and the Future of Finance Flagship Technical Note
okr.date.disclosure2022-04-22
okr.date.doiregistration2025-05-07T12:31:40.010608Z
okr.date.lastmodified2022-04-21T00:00:00Zen
okr.doctypeReport
okr.doctypePublications & Research
okr.docurlhttp://documents.worldbank.org/curated/en/099735204212215248/P173006033b45702d09522066cbc8338dcb
okr.guid099735204212215248
okr.identifier.externaldocumentum33792094
okr.identifier.internaldocumentum33792094
okr.identifier.report170800
okr.importedtrueen
okr.language.supporteden
okr.pdfurlhttp://documents.worldbank.org/curated/en/099735204212215248/pdf/P173006033b45702d09522066cbc8338dcb.pdfen
okr.topicInformation and Communication Technologies::Poverty Reduction & ICT
okr.topicFinance and Financial Sector Development::E-Finance and E-Security
okr.topicInformation and Communication Technologies::Information Security & Privacy
okr.topicPrivate Sector Development::Emerging Markets
okr.topicFinance and Financial Sector Development::Financial Regulation & Supervision
okr.unitEFI-FCI-Finance-GD (EFNDR)
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