Rapid advances in digital technology are transforming the economic and financial landscapes. Financial technology — fintech — is creating new opportunities and challenges for the financial sector – from consumers, to financial institutions, to regulators. Fintech offers many opportunities for governments, from making their financial systems more efficient and competitive to broadening access to financial services for the under-served. It can also pose potential risks to consumers and investors and to financial stability and integrity.
The World Bank and the IMF launched the Bali Fintech Agenda paper in October 2018, which proposes a framework on high-level fintech issues that countries should consider in their domestic policy discussions. The paper consist of 12 policy proposals and cover issues related to enabling fintTech; ensuring financial sector resilience; addressing risks; and promoting international cooperation.
- Embrace the promise of fintech.
- Enable new technologies to enhance financial service provision.
- Reinforce competition and commitment to open, free, and contestable markets.
- 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 World Bank and International Monetary Fund (IMF) are working together to develop a specific work program on fintech, as the nature and scope of their members’ needs become clearer, in response to the Bali Fintech Agenda. They carry the voice of countries that are themselves not members of international standard-setting bodies on issues such as money laundering and terrorism financing, market integrity, and consumer protection.
Fintech will be a key pillar in the World Bank’s larger disruptive technologies engagement. The Agenda contributes to building the foundations of the digital economy and is supported by the Bank’s partners, including the United Nations, European Union, and International Finance Corporation.
