FinTech and SupTech: how to leap forward?

The digital transformation of the global economy and the financial sector is accelerating. Cash use is declining, and digital currencies and channels are increasingly used. For millions of people, this digitization is transformative, and the COVID-19 crisis has accelerated this trend by disrupting consumers’ payment behaviour and lowering the demand for cash.

See: 

Fintech Innovation: Sandboxes as a Tool (Presentation by Randee Pavalow)

Podcast: A Regtech-based Blockchain KYC Solution for Document Custody with Brice Penaud, CEO Commercial Passport

However, two significant challenges emerge from this picture. First, financial authorities are in most cases ill-equipped to oversee the digital economy and its increasingly complex financial sectors. They need to access new datasets and deploy smart analytical tools to establish knowledge and evidence that drive targeted, risk-based decision-making to promote financial inclusion, maintain stability, pursue consumer protection, strengthen integrity, sustain competition, and drive innovation. Second, a new “Big Data divide” is forming between the digital financial services (DFS) providers who can leverage data for their respective ends and many public and private sector stakeholders who cannot. This imbalance of power has the potential to skew the development of digital financial ecosystems in favor of a few large players.