- Ladies and gentlemen, good morning.
- I am pleased to be with you here in Tianjin to examine the intersection of technology and finance – an issue that is highly pertinent to economic development, and thus to my institution, the World Bank Group
- Before I offer you my thoughts on the subject, allow me a few minutes to put today’s topic in the context of the current global economic landscape.
GLOBAL ECONOMY
- The global economy appears to be settling at a low growth rate that will be insufficient to foster sustained economic development and jobs for all.
- Over the next decade, 1.2 billion young people will reach working age, but on our current growth path, nearly 300 million of them will remain without a job
- Unaddressed, this gap of nearly 300 million jobs will stall poverty reduction, causing harm and instability in countless lives and across economies
- Slower growth in developing economies also implies substantially slower catch-up toward advanced-economy living standards than previously experienced.
- While developing East Asia and the Pacific still grew faster than the rest of the world in 2024, that growth was also slower than before the pandemic.
- In 2025, the World Bank projects that regional growth in East Asia and the Pacific will slow to 4 percent, down from 5 percent the year before.
- This is driven by pre-existing trends such as slowing productivity growth, aging populations and rising public debt in many countries, but now aggravated by heightened policy uncertainty and adverse trade policy shifts, persistent inflation, and climate-related natural disasters.
- In today’s uncertain and challenging global environment, the World Bank—as the largest multilateral development bank—has stepped up its support to meet the evolving development needs of our client countries. Through a series of in-depth reform measures, we are strengthening our ability to respond effectively and at scale. The World Bank Group stands ready to assist developing countries as they navigate heightened uncertainty and work to reignite sustainable growth.
- I will spend a few minutes outlining how the World Bank Group is evolving to rise to this challenge, before turning to the promise of harnessing technological change to help solve our economic challenges.
WORLD BANK GROUP
- The World Bank Group has now entered its ninth decade of operation
- Over the past 80 years, our financing model has leveraged $29 billion in contributions from member countries into nearly $1.5 trillion in development finance—a 50-to-1 return.
- Originally conceived to finance reconstruction of industries and infrastructure after the Second World War, our institution has continuously evolved to meet new development challenges
- This has included expanding our support from basic physical infrastructure to also finance human development needs such as education and healthcare, to helping countries carry out economic reforms, investing in the burgeoning private sector in emerging economies, and supporting economic development that is more environmentally sustainable
- Today, we continue to pursue initiatives under the leadership of our President, Ajay Banga, to build a bigger, better, and faster World Bank Group. Let me emphasize a few of these measures:
- First, we are getting bigger.
- We have aggressively pursued capital adequacy measures and stretched the IBRD balance sheet to secure over $100 billion in additional lending capacity over the next 10 years.
- A new 3-year IDA cycle will leverage 59 shareholders’ contribution of $23 billion to fund the world's poorest countries with up to $100 billion in concessional terms.
- Second, we are becoming faster:
- Our processes are being streamlined for greater speed—project preparation times have already been significantly reduced, and we continue to push for further improvements.
- Third, we are getting more focused and effective:
- A new WBG Scorecard has been introduced to track progress across all sectors and ensure accountability for our commitments.
- We are working to integrate our public and private sector departments to offer more streamlined and comprehensive support to our clients
- Furthermore, more staff, including our senior managers, are moving to the field to be closer to our clients.
- These changes will allow us to deliver on our vision of a world free of poverty on a livable planet.
- To achieve sustained poverty reduction, we are now laser-focused on the creation of more and better jobs.
- Jobs are the best way to escape poverty - by providing income, dignity, and economic and social stability, and empowering women and young people.
- Our goal is to help countries build dynamic private sectors that convert growth into local jobs.
- We’re taking a three-part approach:
- First, we focus on the preconditions for jobs such as infrastructure, health, and education.
- Second, we help create a predictable regulatory environment so the private sector can operate and grow.
- Third, we help mobilize private capital, because public finance alone will not deliver the necessary investment.
- All of this requires strong and sustained financial support. We must enhance the role of financial institutions and markets, improve both the quality and accessibility of financial services, and mobilize greater resources to support industrial development and technological advancement in developing countries. This brings me to today’s forum theme: harnessing the interaction of technology and finance for economic development.
TECHNOLOGY AND FINANCE
- The intersection of technology and finance is transforming global financial services, reshaping payments, lending, insurance, investments, and more.
- To name but one well known example, in less than fifteen years, mobile money has dramatically enhanced financial inclusion, with over 1.3 billion registered accounts globally. Notably, Sub-Saharan Africa boasts over 600 million accounts, bringing often life-changing financial tools to some of the most marginalized communities worldwide.
- In fact, fintech innovations span many aspects of finance: fast payments such as Brazil’s Pix and Thailand’s PromptPay; microlending such as Amartha in Indonesia; asset financing such as M-KOPA in Kenya; or investments such as PiggyVest in Nigeria.
- China exemplifies the impressive impact of integrating technology and finance:
- China has built an impressive modern payment system infrastructure and nurtured big techs (like Tencent and Alibaba) to expand access to finance for hundreds of millions of Chinese citizens and entrepreneurs.
- China’s MSMEs and agri-businesses were largely underserved, yet digital banks (such as WeBank and MyBank) are helping overcome this.
- China’s central bank digital currency accounts have grown to 1/8th of the population, and transaction volumes are growing four times year on year, promising inclusion and efficiency.
- Furthermore, China has invested heavily in AI research and development, with DeepSeek becoming a global phenomenon, and financial institutions increasingly leveraging AI for better services and lower risks.
- Across the world, the future of blending technology and finance looks bright. Consider open finance and AI advancements as just two promising developments.
- Open finance, based on integrative fintech, promises more personalized and customized finance. In the region, South Korea has been at the forefront, moving from open banking to open finance to open data, with consumers and data owners in charge.
- AI is likely to touch all aspects of finance – for example, AI-driven platforms are offering tailored financial advice and services based on individual preferences.
- However, challenges remain, and new risks are emerging:
- On the inclusion front, 1.4 billion adults worldwide are still excluded from the financial sector. More than a third of Emerging Market and Developing Economies have less than 50 percent financial inclusion.
- Cross-border payments continue to be slow, costly, opaque, and not yet universally accessible. Sending $200 still costs around 6 percent on average.
- And innovation comes with new risks.
- Approaches to financial stability and integrity need to continue adapting, just as consumer and investor protection.
- Fair competition needs to be assured by financial and competition watchdogs.
- Cyber risks are forcing market players to build new layers of operational resilience.
THE WBG’s VALUE ADDED IN Developing Financial Sector and advancing technological capabilities
- We, in the World Bank Group, are determined to ensure that technological innovation is harnessed to enhance financial services, especially for the poor, and to support policymakers and regulators in managing challenges and risks.
- To achieve this, we deploy our financing but also research, advisory services and technical assistance to improve digital infrastructure and to create a regulatory environment that promotes fintech investments and adoption
- “Digital infrastructure” is the fundamental basis of this transformation.
- Digital infrastructure refers not just to better physical infrastructure to enhance connectivity, but also aspects such as Digital IDs that serve as the foundation for secure, trusted and inclusive access to public and private digital services
- We are assisting over 60 countries with digital identities – for example, Morocco, the Philippines, Nigeria, and Samoa – benefitting over 500 million people
- Beyond digital infrastructure, we support policymakers and regulators on multiple fronts.
- We are supporting more than 40 countries in implementing or modernizing domestic and regional fast payment systems, with an emphasis on interoperability.
- A key area of support is equipping regulators and supervisors with new tools to deal with financial sector stability and integrity considerations. For example, we assist with supervisory technology (SupTech) that can help with early warning systems to detect emerging risks and vulnerabilities.
- We are also exploring how AI can help with supervisory efficiency to alleviate resource constraints in areas such as Anti-Money Laundering and Combating the Financing of Terrorism (AML/CFT) or consumer protection.
- We are also conducting research, contributing to the global debate, and helping policymakers think through the new frontiers in digital finance, including central bank digital currencies, decentralized crypto assets, and AI-assisted asset management.
- Finally, we are encouraging Public-Private Partnerships in support of innovation. For example, in Pakistan we trained 28 accelerators and incubators, along with all 5 private equity and venture capital funds, positioning them as platforms for hundreds of firms.
- Let me use one more example to illustrate how these strands of the World Bank Group’s work come together to help fintech development and adoption.
- Take the Philippines, where only 28 percent of households have fixed broadband and only 51 percent of Filipino adults having a transaction account with a financial institution.
- Firstly, the World Bank Group helped improve digital connectivity – the very basis for fintech development and adoption. We supported regulatory reforms to open-up cell-towers to private investors, and our private sector arm IFC invested directly, increasing the number of cell-towers by 50% in two years. This has greatly improved connectivity. More recently, we have invested $270 million to improve and extend broadband connectivity to 20 million people.
- Secondly, we have supported the roll-out of the Philippines Identification System (PhilSys) to now more than 80 million Filipinos, one of the world’s fastest rollouts of a new digital ID system
- Thirdly, we have provided financial and advisory support for key regulatory reforms, including, for example
- A regulation on the establishment of Digital Banks to create an enabling environment for providing a cost-effective banking experience for retail clients and MSMEs, and
- the adoption of an Open Finance Framework that sets out the technical, security and governance standards for sharing customer’s personal and financial data,
- As this illustrates, the World Bank Group can add tremendous value in the fintech space by working with governments and the private sector to put in place basic digital infrastructure and a supportive regulatory environment that will boost investment and adoption
- Importantly, our role extends beyond fintech. The World Bank has long been a partner in helping countries strengthen the core capacities of their financial institutions—a crucial foundation for economic stability, financial inclusion, and resilience.
- We support financial authorities in enhancing regulatory and supervisory frameworks, ensuring that financial institutions are well-capitalized, well-governed, and capable of managing risks. This includes support for modernizing banking supervision practices, adopting risk-based approaches, and implementing international standards.
- We help countries develop and deepen capital markets, which are essential for mobilizing long-term financing for infrastructure and enterprise growth. Through both public and private sector arms, we provide advisory services and investment support for government bond markets, securitization, and institutional investor development.
- We also support the development of financial sector strategies that guide reforms and prioritize actions, helping governments coordinate across ministries and regulators.
- In addition to working with our clients, we are also pursuing technical innovation in finance ourselves:
- For example, we have issued innovative bond instruments using blockchain technology as we push the frontiers of efficiency in our own fundraising.
- In 2018, we issued bond-I, the first global bond fully on blockchain. In 2023, we issued Digitally Native Notes with Euroclear, followed by a digital bond in 2024 to be settled with wholesale Swiss franc CBDC issued by the Swiss National Bank.
- We are actively advancing the World Bank’s digital transformation strategy, including the expanded use of artificial intelligence, while managing associated risks to enhance the efficiency and effectiveness of our operations.
- When it comes to supporting technological innovation and progress, the World Bank has a long and established track record. Over the past 80 years, we have helped finance industry development in client countries, promoted knowledge sharing and peer learning among emerging markets and developing economies, and supported industrial advancement through a range of tools—including knowledge transfer, infrastructure investment, and social sector development.
- A recent example of our evolving approach is our recognition that, while digital technologies are transforming economies and generating jobs at unprecedented rates, many countries are being left behind. That’s why we are working closely with client countries to bridge the digital divide—by expanding internet access, strengthening digital infrastructure, and investing in the skills needed to succeed in an AI- and data-driven economy. Without such support, the digital economy risks becoming a source of inequality rather than inclusion.
- As I come to the end of my remarks, allow me to reflect:
- Today’s global economy is characterized by significant uncertainty.
- As countries attempt to navigate this, the World Bank Group has been evolving to support them.
- Harnessing technology in the financial sector is an important area of our financial support and advisory work to boost economic development
- As we explore it together, we must recognize that this dynamic and evolving landscape offers immense opportunities but also comes with challenges.
- We, the World Bank Group, are committed to remaining at the forefront of this agenda and helping policymakers and the private sector improve the lives of people around the world.
- Thank you again for your kind invitation.
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Last Updated: Jun 05, 2025
