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Fintech and the Future of Finance



This report explores the implications of fintech and the digital transformation of financial services for market outcomes on one side, and regulation and supervision, on the other, and how these interact.

Fintech, the application of digital technology to financial services, is reshaping the future of finance– a process that the COVID-19 pandemic has accelerated. The ongoing digitization of financial services and money creates opportunities to build more inclusive and efficient financial services and promote economic development. Fintech is transforming the financial sector landscape rapidly and is blurring the boundaries of both financial firms and the financial sector. This  presents a paradigm shift that has various policy implications, including:

  • Foster beneficial innovation and competition, while managing the risks.
  • Broaden monitoring horizons and re-assess regulatory perimeters as embedding of financial services blurs the boundaries of the financial sector.
  • Be mindful of evolving policy tradeoffs as fintech adoption deepens.
  • Review regulatory, supervisory, and oversight frameworks to ensure they remain fit for purpose and enable the authorities to foster a safe, efficient, and inclusive financial system.
  • Anticipate market structure tendencies and proactively shape them to foster competition and contestability in the financial sector.
  • Modernize and open up financial infrastructures to enable competition and contestability.
  • Ensure public money remains fit for the digital world amid rapid advances in private money solutions.
  • Pursue strong cross-border coordination and sharing of information and best practices, given the supra-national nature of fintech.

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Technical Notes

Global Patterns of Fintech Activity and Enabling Factors

The Fintech Activity note takes stock of available fintech-related data, to document patterns of fintech activity across the world, and to help identify enabling factors.

Global Market Survey: Digital Technology and the Future of Finance Survey

The Fintech Market Participants Survey discusses findings from the survey whose responses span 330 market participants from 109 countries.

Fintech and the Digital Transformation of Financial Services

The Market Structure note draws on the underlying economics of financial services and their industrial organization to examine the implications of digital innovation for market structure and attendant policies.

Regulation and Supervision of Fintech

The Regulation note aims to provide regulators and supervisors in emerging markets and developing economies (EMDEs) with high-level guidance on how to approach the regulating and supervising of fintech.

Consumer Protection Implications of Fintech

The Consumer Protection note provides an overview of new manifestations of consumer risks that are significant and cross-cutting across four key fintech products: digital microcredit, P2PL, investment-based crowdfunding, and e-money.

Innovation in Payments

The Payments note discusses the most significant innovations in payments and their key impacts and implications on users, banks and other payment service providers, regulators, and the overall structure of the payments market.

Fintech and SME Finance: Expanding Responsible Access

The SME note discusses policy and regulatory approaches that can facilitate access to finance for small and medium enterprises (SMEs) through digital financial services.

What Does Digital Money Mean for EMDEs?

The Digital Money note categorizes new digital money proposals including crypto-assets, stablecoins, and central bank digital currencies; assesses the supply and demand factors for their adoption; and lays out particular policy challenges for authorities in EMDEs.