Regulators have to be vigilant about developments in the FinTech sector as its importance is bound to grow in the future, Svein Andresen has said.
The Financial Stability Board’s (FSB) Secretary General said in his speech at the Chatham House conference yesterday, “Much hype surrounds the development of fintech and for regulators it is essential to understand what developments are going to change the way financial markets operate and those that won’t.
“We have been explicit in our desire to look at both financial stability benefits and risks, so as not to bias our work against fintech.”
Currently, FinTech does not pose a risk to financial stability but the FSB plans to devote more attention to the sector in the coming years.
Having previously explored and probed blockchain and P2P lending, the authority now plans to investigate the key drivers of fintech innovation.
In its research so far, the FSB has identified three promises of fintech which have financial stability implications, especially if the trend toward adoption of financial technology continues.
Those three promises are the greater access to and convenience of financial services, greater efficiency of financial services, and the push toward a more decentralised financial system.
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