Monday, February 18, 2019 05:09PM / By UNSGSA /IMF
Publication
includes early lessons from pioneering regulators who have used innovation
offices, sandboxes, and RegTech to seize the potential of FinTech and address
its challenges.
Regulatory
sandboxes are neither necessary nor sufficient to promote financial inclusion,
and similar results can be achieved through innovation offices and other tools,
according to a new report
commissioned by Her Majesty Queen Màxima of the Netherlands, the United Nations
Secretary-General’s Special Advocate for Inclusive Finance for Development
(UNSGSA).
The
report also emphasizes the potential for FinTech to accelerate a dramatic rise
in financial inclusion for the 1.7 billion people worldwide who do not have a
bank account.
The
report, Early Lessons on
Regulatory Innovations to Enable Inclusive Fintech: Innovation Offices,
Regulatory Sandboxes, and Regtech was produced by the
University of Cambridge’s Centre for Alternative Finance (CCAF) and the FinTech
Working Group of the UNSGSA with support from the Monetary Authority of
Singapore (MAS).
“This
report comes at a key moment when fintech has given us an unprecedented
opportunity to bring more people into the formal financial system,” said Queen
Màxima. “While these innovative tools are exciting, countries need guidance on
how to regulate them in a way that maximizes their potential and minimizes
their risks.”
“The
fintech phenomenon offers great opportunity to make finance more purposeful.
Harnessed well, it will help to make financial services more accessible, more
affordable, and more focused on the customer’s needs. Realising this potential
requires close and continuous collaboration between the private and public sector.
MAS is delighted to support UNSGSA and CCAF in producing this report, share our
experiences, and learn from fellow regulators,” said Ravi Menon, Managing
Director, MAS.
Regulators
seeking to adopt regtech tools should start small with one or two test cases
and build momentum from there, the report said, adding that capacity building
inside regulatory authorities is also crucial.
To
succeed, regulators will need dedicated staff familiar with new technologies.
The
UNSGSA FinTech Working Group is made up of members from Alliance for Financial
Inclusion, Ant Financial, Bankable Frontier Association, Bill & Melinda
Gates Foundation, Bangko Sentral ng Pilipinas, Better Than Cash Alliance,
Consultative Group to Assist the Poor, International Finance Corporation, MAS,
McKinsey, Omidyar Network, PayPal, Reserve Bank of India, and the World Bank.
The Cambridge Centre for Alternative Finance led the writing, research, and
production under the supervision and coordination of the Office of the UNSGSA.
About the UNSGSA
As
Special Advocate, Her Majesty Queen Máxima of the Netherlands champions
universal access to affordable, effective, and safe financial services for the
poor. Collaborating closely with global and national partners, she raises
awareness, encourages leadership, works to break down barriers, and supports
action to expand financial inclusion. Link
About the CCAF
The
Cambridge Centre for Alternative Finance is an international interdisciplinary
academic research institute dedicated to the study of alternative finance,
which includes financial channels and instruments that emerge outside of the
traditional financial system. Link
About MAS
As
Singapore’s central bank, the Monetary Authority of Singapore (MAS) promotes
sustained, non-inflationary economic growth through the conduct of monetary
policy and close macroeconomic surveillance and analysis. It manages
Singapore’s exchange rate, official foreign reserves, and liquidity in the
banking sector. It is also Singapore’s integrated financial supervisor. MAS
also works with the financial industry to promote Singapore as a dynamic
international financial centre. Link
For
more information, please contact:
Carolyn
Hanson, Office of the UNSGSA, +1 347 489 8666, carolyn.hanson@unsgsa.org
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