Fintech and the Future of Finance : Market and Policy Implications / Erik Feyen, Harish Natarajan, and Matthew Saal.

Format:

Book

Author/Creator:

Feyen, Erik, author.

Natarajan, Harish, author.

Saal, Matthew I., author.

Language:

English

Subjects (All):

Financial services industry--Data processing.

Financial services industry.

Financial services industry--Government policy.

Physical Description:

1 online resource (171 pages)

Edition:

First edition.

Place of Publication:

Washington, DC : The World Bank Group, [2023]

Summary:

Explores the implications of fintech and the digital transformation of financial services for market outcomes, regulation and supervision, and how these interact. The report is intended to provide a high-level perspective on these topics for senior policy makers.

Contents:

Front Cover

Contents

Foreword

Acknowledgments

Main Messages

Abbreviations

Overview

Introduction

The Fundamental Drivers of Fintech

Market Outcomes

Policy Objectives and Roles for Policy Makers

Organization of This Publication

References

Chapter 1. Introduction

About Fintech and the Future of Finance

Conceptual Framework

Fintech: What It Is and Why It Matters

Notes

Chapter 2. Fundamental Drivers of ­Fintech

Key Technologies: Connectivity and Computing Power

Impact of Technology

Impact of Economic Forces: Scale Economies, Frictions, and Rebundling

Chapter 3. Market Outcomes

Impacts across the Four Dimensions of Market Outcomes

Financial Infrastructure

New Business Models and Products

New Players: Entry, Concentration, and Competition

Implications for Market Structure

Chapter 4. Core Policy Objectives and Evolving Trade-Offs

Main Policy Challenges

Policy for an Evolving Fintech Market

Balancing the Policy Trade-Offs

Chapter 5. Regulation and Supervision

Current Regulatory Environment

Typology of Regulatory Responses

Activity-Specific Regulation

Data-Generation Issues: Possibilities and Perils

Regulation for Fair Competition

Looking Ahead

Chapter 6. Conclusion

Emerging Policy Implications

Final Remarks

Appendix A Overview of Recent Market Developments

Appendix B Executive Summaries of ­Technical Notes

Appendix C Acceleration of Fintech Use during the COVID-19 Pandemic

Appendix D Open Banking Frameworks in Selected Countries

Appendix E Principles for Ethical Use of Artificial Intelligence and Data Analytics

Glossary

Boxes

Box 1.1 Fintech and the Future of Finance Technical Notes.

Box 3.1 Fintech and the COVID-19 Pandemic

Box 4.1 The Bali Fintech Agenda

Box 5.1 World Development Report 2021: Data for Better Lives

Box 5.2 The Rise of Crypto-Assets and Stablecoins: Public Policy Implications

Box B.1 Characterizing Innovations in Payments

Figures

Figure O.1 Conceptual Framework for Fintech: Interactions between Markets, Policy, and Development

Figure 1.1 Conceptual Framework for Fintech: Interactions between Markets, Policy, and Development

Figure 1.2 Growth in Mobile Money Accounts and Transactions, 2017-20

Figure 1.3 Global Growth in Big Tech Credit Relative to Fintech Credit

Figure 1.4 Growth in Fintech Investments over the Past Decade

Figure 2.1 Expectations Regarding Customer Relationships with Financial Service Providers

Figure 3.1 Market Outcomes of Digital Money and Payments, by Dimension

Figure 3.2 Market Outcomes of Digital Lending, by Dimension

Figure 3.3 Expected Shifts in Financial Market Concentration, by Subsector

Figure 3.4 Expectations about Customer Relationships in Financial Services, by Subsector

Figure 3.5 Expected Risk of Customer Loss, Risk to Profits, and Potential for Cost Reduction from Fintech and Digital Transformation, by Subsector Type

Figure 3.6 Potential "Barbell" Financial Services Market: An Illustration

Figure 4.1 Policy Trade-Offs due to Fintech Developments

Figure 5.1 Views of Financial Market Participants on Whether the Regulatory Environment Enables Innovation by Incumbents and New Entrants, by Region

Figure 5.2 Areas in Which Regulators Have Modified Regulatory and Supervisory Approaches to Facilitate Fintech Development or Develop Supervisory Capacity, by Country Income Level.

Figure 5.3 Areas in Which Regulators Have Modified Regulatory Frameworks to Address Emerging Risks from Fintech Activities, by Activity Type and Country Income Level

Figure 5.4 The Fintech Regulatory Decision Tree

Figure A.1 Use of Digital Channels for Sales and Customer Origination

Figure C.1 Worldwide Downloads of Financial Apps before and during the COVID-19 Pandemic

Maps

Map 1.1 Global Use of Digital Payments and Fintech Credit

Map 1.2 Equity Investments in Fintech Companies

Map 5.1 A Global Heatmap of Open Banking Implementation

Table

Table D.1 Open Banking Authorities and Regulatory Approaches, by Country.

Notes:

Includes bibliographical references.

Description based on publisher supplied metadata and other sources.

Description based on print version record.

Other Format:

Print version: Feyen, Erik Fintech and the Future of Finance

ISBN:

9781464819155

OCLC:

1377818163