Strategy for Fintech Applications in the Pacific Island Countries
Departmental Papers, August 22, 2019
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Bibliographic details
- Authors: Sonja Davidovic, Elena Loukoianova, Cormac Sullivan, Hervé Tourpe
- Published: August 22, 2019
- Series: Departmental Papers
- DOI: https://doi.org/10.5089/9781498326735.087
Summary
- The Bali Fintech Agenda highlights 12 principles for policymakers to consider when formulating their approaches to new financial technology (fintech).
- The agenda aims to harness the potential of fintech while managing associated risks.
- This paper examines how some elements of the Bali Fintech Agenda could be applied in Pacific island countries, which face significant financial-structural challenges.
- Authors: Sonja Davidovic, Elena Loukoianova, Cormac Sullivan, Hervé Tourpe.
- Date: August 22, 2019.
Context and challenges
- Focus: Pacific island countries confronting significant financial-structural challenges.
- Targeted technologies and themes: fintech, mobile banking, identity systems, payment systems, big data, credit scoring, customer data protection.
- Private-sector considerations: business model feasibility, capital investment, due diligence.
- Operational innovations mentioned: solar-panel-enabled payment device, utility payment record, payment history to support credit scoring.
Key findings and emphasis
- The Bali Fintech Agenda’s 12 principles serve as a policy framework to harness fintech benefits and manage risks.
- The paper considers selective application of those principles to the Pacific island context, addressing:
- Financial inclusion expansion through mobile banking and payment development.
- Use of payment history and alternative data for credit scoring.
- Data protection and customer data management.
- Infrastructure and transaction-cost constraints in island contexts.
Policy recommendations and strategic elements
- Leverage elements of the Bali Fintech Agenda adapted to small island economies to promote financial inclusion.
- Encourage public-private partnerships and private-sector engagement for feasibility studies and capital investment.
- Implement data protection and due-diligence standards for customer data and big data applications.
- Explore identity systems and alternative data (payment history, utility payment record) to improve credit scoring and access to finance.
- Consider technology-enabled solutions (for example, solar-panel-enabled payment device) to address infrastructure limitations.
Publication and metadata
- Series: Departmental Paper No. 2019/012.
- Issue: 012.
- Volume: 2019.
- Pages: 66.
- Stock No: SFAPICEA.
- DOI: https://doi.org/10.5089/9781498326735.087
- ISBN: 9781498326735
- ISSN: 2616-5333
Source: "Strategy for Fintech Applications in the Pacific Island Countries", Departmental Papers, Sonja Davidovic; Elena Loukoianova; Cormac Sullivan; Hervé Tourpe; August 22, 2019.