Fintech in a Global Economy: Finding balance between innovation and stability
The International Monetary Fund and the World Bank Group this week launched the Bali Fintech Agenda, a set of 12 policy elements aimed at helping member countries harness the benefits and opportunities of rapid advances in financial technology.
Announcing the new blueprint on Thursday, IMF managing director Christine Lagarde said international cooperation would be critical to ensure a balance between maximizing fintech opportunities and maintaining resilience in the financial sector.
Lagarde: Fintech can have a major social and economic impact...
“There are an estimated 1.7 billion adults in the world without access to financial services,” said Lagarde. “Fintech can have a major social and economic impact for them and across the membership in general. All countries are trying to reap these benefits, while also mitigating the risks. We need greater international cooperation to achieve that, and to make sure the fintech revolution benefits the many and not just the few.”
BBVA Executive Chairman Francisco González also attended this year's Bali event and shared Lagarde’s outlook about the impact of the fintech revolution.
BBVA Executive Chairman Francisco González attends this year’s meeting of the International Monetary Fund (IMF) and World Bank in Bali, Indonesia.
González: Each industrial revolution has been followed by more wealth and prosperity for all humankind
"Each industrial revolution has been followed by more wealth and prosperity for all humankind. The same thing will happen with the digital revolution," said González.
The Fintech Agenda is intended to serve as a framework for countries to assess their policy options and adapt them to their own circumstances and priorities:
- Embrace the promise of fintech
- Enable new technologies to enhance financial service provision
- Reinforce competition and commitment to open, free, and contestable markets to ensure a level playing field
- Foster fintech to promote financial inclusion and develop financial markets
- Monitor developments closely to deepen understanding of evolving financial systems
- Adapt regulatory framework and supervisory practices for orderly development and stability of the financial system
- Safeguard the integrity of financial systems
- Modernize legal frameworks to provide an enabling legal landscape
- Ensure the stability of domestic monetary and financial systems
- Develop robust financial and data infrastructure to sustain fintech benefits
- Encourage international cooperation and information-sharing
- Enhance collective surveillance of the International Monetary and Financial System
The 12 elements are not meant to be a prescriptive list, but rather a guideline to be customized by each country’s government, financial institutions, and technology partners. The detailed list, along with the entire paper, are available here.