Core Policy Objectives and Evolving Trade-Offs

Abstract

No AccessApr 2023Core Policy Objectives and Evolving Trade-OffsAuthors/Editors: Erik Feyen, Harish Natarajan, and Matthew SaalErik FeyenSearch for more papers by this author, Harish NatarajanSearch for more papers by this author, and Matthew SaalSearch for more papers by this authorhttps://doi.org/10.1596/978-1-4648-1914-8_ch4AboutView ChaptersFull TextPDF (0.5 MB) ToolsAdd to favoritesDownload CitationsTrack Citations ShareFacebookTwitterLinked In Abstract: Examines the policy issues facing national authorities seeking to foster the benefits of digital transformation of the financial sector while also addressing potential risks. Authorities remain eager to foster the benefits of digital transformation, but they also remain mindful of various challenges that emerge as digital transformation continues to permeate market activities. Fintech can promote poverty alleviation and economic growth by enhancing financial efficiency, inclusion, competition, and innovation; however, policy makers must carefully weight these benefits against challenges and risks to financial stability, integrity, and consumer safety. To that end, the Bali Fintech Agenda outlined by the World Bank Group and International Monetary Fund (IMF) advocates embracing the promise of fintech while managing risks to consumers and to the stability and integrity of the financial system. Policy makers will have to address increasingly complex trade-offs that depend on the level of development of the financial system and its customers, the preexisting competitive environment, and other social preferences. ReferencesBank of England. 2019. “Bank of England Announces Supervisory Action over Visa Europe’s June 2018 Partial Outage Incident.” Press release, March 8. Google ScholarCrisanto, Juan Carlos, Conor Donaldson, Denise Garcia Ocampo, and Jermy Prenio. 2019. “Regulating and Supervising the Clouds: Emerging Prudential Approaches for Insurance Companies.” Insights on Policy Implementation No. 13, Financial Stability Institute, Basel, Switzerland. Google ScholarFeyen, Erik, Jon Frost, Leonardo Gambacorta, Harish Natarajan, and Matthew Saal. 2022. “Fintech and the Digital Transformation of Financial Services: Implications for Market Structure and Public Policy.” Market Structure technical note for Fintech and the Future of Finance, World Bank, Washington, DC. Google ScholarFSB (Financial Stability Board). 2019. “Third-Party Dependencies in Cloud Services: Considerations on Financial Stability Implications.” Report, FSB, Basel, Switzerland. Google ScholarIMF (International Monetary Fund) and World Bank. 2018. “The Bali Fintech Agenda.” Chapeau paper, September 19, IMF and World Bank, Washington, DC. Google ScholarTogoh, Isabel and Alexandra Topping. 2018. “Visa Outage: Payment Chaos after Card Network Crashes—As It Happened.” The Guardian, June 1. Google ScholarWorld Bank. 2021. World Development Report 2021: Data for Better Lives. Washington, DC: World Bank. LinkGoogle Scholar Previous chapterNext chapter FiguresreferencesRecommendeddetails View Published: April 2023ISBN: 978-1-4648-1914-8e-ISBN: 978-1-4648-1915-5 Copyright & Permissions Related TopicsFinance and Financial Sector DevelopmentInfrastructure Economics and FinanceInternational Economics & Trade KeywordsFINANCIAL TECHNOLOGYFINANCIAL SERVICESDIGITAL ECONOMYDIGITIZATION OF FINANCIAL SERVICESINNOVATIONFINANCIAL SECTORDIGITAL DEVELOPMENTCONNECTIVITY AND ACCESS TO MARKETSFINANCIAL INFRASTRUCTUREFINANCIAL REGULATIONRISK MANAGEMENT PDF DownloadLoading ...