Search Results

You are looking at 1 - 10 of 45 items for :

  • "benefits of FinTech" x
Clear All
Mr. Amadou N Sy, Mr. Rodolfo Maino, Mr. Alexander Massara, Hector Perez-Saiz, and Preya Sharma
FinTech is a major force shaping the structure of the financial industry in sub-Saharan Africa. New technologies are being developed and implemented in sub-Saharan Africa with the potential to change the competitive landscape in the financial industry. While it raises concerns on the emergence of vulnerabilities, FinTech challenges traditional structures and creates efficiency gains by opening up the financial services value chain. Today, FinTech is emerging as a technological enabler in the region, improving financial inclusion and serving as a catalyst for the emergence of innovations in other sectors, such as agriculture and infrastructure.
José Garrido, Ms. Yan Liu, Joseph Sommer, and Juan Sebastián Viancha

, including legal uncertainties. As discussed in the Bali Fintech Agenda ( IMF 2018 ), legal frameworks need to be modernized to help member countries reap the benefits of fintech while mitigating risks. Building a flexible and predictable legal framework that accommodates technological changes according to domestic circumstances can help bolster trust and reliability in financial products. Legal certainty and reliable legal solutions are essential for promoting economic growth and financial stability. There is a symbiotic relationship between technological revolutions

José Garrido, Ms. Yan Liu, Joseph Sommer, and Juan Sebastián Viancha
This note explores the interactions between new technologies with key areas of commercial law and potential legal changes to respond to new developments in technology and businesses. Inspired by the Bali Fintech Agenda, this note argues that country authorities need to closely examine the adequacy of their legal frameworks to accommodate the use of new technologies and implement necessary legal reform so as to reap the benefits of fintech while mitigating risks. Given the cross-border nature of new technologies, international cooperation among all relevant stakeholders is critical. The note is structured as follows: Section II describes the relations between technology, business, and law, Section III discusses the nature and functions of commercial law; Section IV provides a brief overview of developments in fintech; Section V examines the interaction between technology and commercial law; and Section VI concludes with a preliminary agenda for legal reform to accommodate the use of new technologies.
International Monetary Fund. Asia and Pacific Dept
This Selected Issues paper investigates impact of financial technology (FinTech) on Malaysia’s financial sector. Malaysia is digitally enabled to seize the opportunities brought by FinTech. Malaysian banks continue to dominate in deposits, lending and capital raising, but they have been gradually reducing their emphasis on physical distribution networks. The top five Malaysian banks have increased their technology-related spending over the past three years. Regulators have been mindful of developments outside of the traditional regulatory perimeter that could pose financial stability risks. Rapidly evolving technology is likely to bring multiple challenges to the financial sector. Regulatory requirements are an important component of operating in the FinTech space. Regulators must strike a balance between ensuring financial stability and consumer protection, while promoting innovation and competition. In order to address the lack of regulatory acumen among FinTech industry players, Bank Negara Malaysia has spearheaded various initiatives. A key challenge for Malaysian regulators is to strike a balance between reaping the benefits of FinTech and mitigating potential downside risks in both conventional and Islamic finance. Frequent refinements to regulations and supervision are required to keep pace with the highly dynamic nature of FinTech to balance benefits and risks.
International Monetary Fund. Monetary and Capital Markets Department
Ireland’s fintech sector is growing in importance through the entry of innovative new players and digital transformation of incumbents’ business models and products. The Irish Government has adopted an action plan for the development of Ireland’s international financial services sector that includes several initiatives of relevance to fintech. Meanwhile, the Central Bank of Ireland (the Central Bank), the integrated financial services regulator, engages with new entrants with a view to securing consumer interests and safeguarding the resilience of the financial system, thereby harnessing the benefits of fintech while managing additional risks it may generate. The largest sub-sector is represented by payment and e-money institutions (PIEMIs). Recent data show most Irish adults are using digital payments multiple times a week, while 24 percent use their mobile phone for contactless payments. Ownership of crypto-assets is also on the rise, especially among young adults. Beyond payments and crypto-assets, fintech activities are developing on a smaller scale in areas such as insurance and investment management. Meanwhile, the importance of market support firms, including cloud service providers (CSPs), continues to grow.
International Monetary Fund. Asia and Pacific Dept

national digital identity initiative which falls under the jurisdiction of various government agencies. Its implementation therefore requires close collaboration among the authorities to ensure interoperability and applicability across industries. Striking the right balance between encouraging innovation and ensuring financial stability : A key challenge for Malaysian regulators is to strike a balance between reaping the benefits of FinTech and mitigating potential downside risks in both conventional and Islamic finance. Frequent refinements to regulations and

International Monetary Fund. Monetary and Capital Markets Department

benefits of fintech while managing additional risks it may generate. The growth of fintech, BigTech, non-bank financial intermediation, and the increased role of technology in the provision of financial services to households and business are key areas of regulatory focus. Risks posed by innovation in the provision of financial services include questions over the robustness of the underlying business models of these firms; cyber-related threats; too-big-to-fail concerns; interconnectedness; operational concerns; procyclicality and the impact that fintechs pose for

Mr. Boileau Loko and Yuanchen Yang

Construction B. Empirical Strategy C. Data Sources Empirical Results and Discussion A. Baseline Results B. Economic Mechanisms C. Fintech Interaction with Firm Characteristics D. Weak Institution Reduces Benefits of Fintech Robustness Checks Conclusion Figures 1. Landscape of Fintech Across Countries 2. Employment Rate by Gender 3. Gender Gap in Fintech Adoption Tables 1. Summary Statistics 2. Fintech Development and Female Employment 3. Economic Mechanisms Underlying the Effect of Fintech Development 4. Fintech and Firm

Hector Perez-Saiz and Preya Sharma

be addressed with suitable regulatory frameworks. Policy measures are needed to reap the potential benefits of FinTech while managing associated risks. First, policymakers need to fill the large existing infrastructure gap in the region, starting with electricity and internet services. Second, there is a need to address the perennial race between fast-moving innovation and the slower pace of regulation. Third, policymakers should look beyond the potential benefits of FinTech in just the financial sector to consider the possible impact on employment and