{
  "title": "A Balanced Approach to Fintech Regulation and Innovation—at Home and Abroad",
  "publication": "IMF News, April 1, 2019",
  "sourceUrl": "https://www.imf.org/en/news/articles/2019/04/01/sp040119-a-balanced-approach-to-fintech-regulation-and-innovation",
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  "summary": "Occasion: Opening Remarks for the 2nd IMF Fintech Roundtable.",
  "publishDate": "2019-04-01",
  "sections": [
    {
      "heading": "Overview",
      "content": "- Occasion: Opening Remarks for the 2nd IMF Fintech Roundtable.\n- Speaker: IMF First Deputy Managing Director David Lipton.\n- Date: April 1, 2019.\n- Central framing: balance between promoting fintech-driven innovation and preserving financial sector stability, including the need to align cross-border regulatory approaches."
    },
    {
      "heading": "The Bali Fintech Agenda",
      "content": "- The IMF/World Bank membership approved the Bali Fintech Agenda at the Annual Meetings in October.\n- The Bali Fintech Agenda contains 12 elements that frame policy challenges related to fintech.\n- Emphasis: while discussion often focuses on risks and resilience, the agenda highlights the key word “innovation.”"
    },
    {
      "heading": "Opportunities and Empirical Examples",
      "content": "- Fintech change spans online payments, peer-to-peer lending, use of artificial intelligence in investment advice, and platform-based distribution models.\n- Example findings cited:\n  - The IMF’s African Department shows the 45 countries of Sub-Saharan Africa lead the world in mobile money accounts in per capita terms, and in mobile transactions as a percentage of GDP—almost 10 percent.\n  - The Asia-Pacific Department estimates China now accounts for about 40 percent of global e-commerce transactions; a decade ago that was only 1 percent.\n- Observed impacts: potential to reduce costs and transaction times, boost growth, lift living standards, and enable creation of new businesses and industries."
    },
    {
      "heading": "Risks to Financial Sector Stability",
      "content": "- Key risks noted: competition concerns, market power of technology giants, cyber-risks, social disruptions, data collection and use, and taxation of IT firms.\n- The IMF is addressing stability risks by:\n  - Convening regional events to discuss the Bali Agenda.\n  - Encouraging ongoing dialogue among entrepreneurs, inventors, investors, and regulators.\n  - Expanding understanding through regular policy consultations, financial sector assessment programs, and engagement with industry and standard-setting bodies.\n- Multilateral cooperation is considered essential to manage these risks."
    },
    {
      "heading": "Cross-Border and Multilateral Challenges",
      "content": "- Emerging forces of fragmentation could weaken multilateral cooperation:\n  - Examples include trade disputes, policies promoting national champions (e.g., the battle over 5G networks), and potential regulatory races to the bottom.\n- Policy actions in one country can have spillovers; both action and inaction carry cross-border implications.\n- Risk highlighted: fragmentation into competing clubs could exacerbate common vulnerabilities and threats."
    },
    {
      "heading": "Policy Balance and Recommendations",
      "content": "- Dual balancing act required:\n  - Between promoting innovation while preserving financial stability.\n  - Between acting in the national interest while avoiding adverse spillovers to other countries.\n- Recommended approaches:\n  - Seek solutions through collaboration and multilateral dialogue, such as the roundtable format.\n  - Re-evaluate and, where necessary, strengthen multilateral rules of the game.\n  - Continue experimental regulatory approaches (e.g., regulatory sandboxes, exploration of central bank cybercurrencies) to encompass both innovation and oversight.\n- Charge to participants: keep the delicate balancing act in mind to maximize benefits of new technologies for citizens globally.\n\nOpening Remarks for the 2nd IMF Fintech Roundtable — David Lipton, April 1, 2019.\n\n---\n\n\n References\n\n- David Lipton\n- People's Republic of China and the IMF\n- Republic of Lithuania and the IMF\n- Singapore and the IMF\n- Speeches\n- PRESS CENTER\n- https://www.imf.org/en/home\n\nSource: https://www.imf.org/en/news/articles/2019/04/01/sp040119-a-balanced-approach-to-fintech-regulation-and-innovation"
    }
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    "Published: April 1, 2019",
    "Occasion: Opening Remarks for the 2nd IMF Fintech Roundtable.",
    "Speaker: IMF First Deputy Managing Director David Lipton.",
    "Date: April 1, 2019.",
    "Central framing: balance between promoting fintech-driven innovation and preserving financial sector stability, including the need to align cross-border regulatory approaches.",
    "The IMF/World Bank membership approved the Bali Fintech Agenda at the Annual Meetings in October.",
    "The Bali Fintech Agenda contains 12 elements that frame policy challenges related to fintech.",
    "Emphasis: while discussion often focuses on risks and resilience, the agenda highlights the key word “innovation.”",
    "Fintech change spans online payments, peer-to-peer lending, use of artificial intelligence in investment advice, and platform-based distribution models.",
    "Example findings cited:",
    "Observed impacts: potential to reduce costs and transaction times, boost growth, lift living standards, and enable creation of new businesses and industries.",
    "Key risks noted: competition concerns, market power of technology giants, cyber-risks, social disruptions, data collection and use, and taxation of IT firms.",
    "The IMF is addressing stability risks by:",
    "Multilateral cooperation is considered essential to manage these risks.",
    "Emerging forces of fragmentation could weaken multilateral cooperation:",
    "Policy actions in one country can have spillovers; both action and inaction carry cross-border implications.",
    "Risk highlighted: fragmentation into competing clubs could exacerbate common vulnerabilities and threats.",
    "Dual balancing act required:",
    "Recommended approaches:",
    "Charge to participants: keep the delicate balancing act in mind to maximize benefits of new technologies for citizens globally.",
    "[David Lipton](http://www.imf.org/external/np/omd/bios/dl.htm)",
    "[People's Republic of China and the IMF](http://www.imf.org/external/country/CHN/index.htm)",
    "[Republic of Lithuania and the IMF](http://www.imf.org/external/country/LTU/index.htm)",
    "[Singapore and the IMF](http://www.imf.org/external/country/SGP/index.htm)",
    "[Speeches](https://www.imf.org/en/news/searchnews)",
    "[PRESS CENTER](http://presscenter.imf.org/)",
    "[https://www.imf.org/en/home](https://www.imf.org/en/home)"
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