FSB Says FinTech 'No Immediate Threat' To Stability


Balancing Acrobat

The Financial Stability Board (FSB) met in London this week. The FSB is an international organisation that monitors and makes recommendations about the global financial system. Its object is to promote global financial stability and monitor implementation of agreed policies. Members include the G20 countries and key financial centres such as Hong Kong, Singapore, Spain, and Switzerland.

The FSB met in London's Chatham House to discuss the impact of financial technology (FinTech). The broad conclusion was that FinTech is not destabilising systems. Basically, so far, so good.

CrowdfundinsiderLogo

Our friends at Crowdfundinsder bring us this report: "Secretary General of the Financial Stability Board (FSB) Svein Andresen announced at a Chatham House conference in London earlier this month that Fintech firms looking to disrupt traditional banking and financial systems are not yet posing an immediate threat, according to Reuters. He noted, however, that the FSB will continue to carefully monitor their development.

"Regulators have been carefully threading the line of avoiding suppressing the growth of a sector that offers the promise of jobs, increase in small and medium-sized enterprises (SME), entrepreneurship, and innovation, and ensuring that the Fintech sector does not introduce too much risk to core financial institutions and infrastructure and financial stability. For the future, regulators have an interest in steering the Fintech sector from a disruptive stance to a collaborative position. In fact many national regulators have looked towards creating Fintech "Sandbox" environments where disruptive finance firms may innovate with the assistance, and under the watchful eyes, of regulators.

"Policymakers also view the Fintech sector as pretty small rather than traditional finance. In the U.S., according to the Department of Commerce, finance and industry made up 7 percent of U.S. GDP (2014 data); the service sector makes up a total of 79.5 percent of U.S. GDP (2015 data), so finance and industry is still a small subset of services. Fintech would make up an even smaller percentage of the total approximately 7 percent of U.S. GDP.

"On the other hand, according to PwC's 2016 Global FinTech Report, '[I]ncumbent financial institutions have approached FinTech in various ways, such as through joint partnerships or start-up programmes. But whatever strategy an organisation pursues, it cannot afford to ignore FinTech.'

"Earlier this year, Chairman of the FSB Mark Carney warned that the fintech sector may face more regulation if the growing number of startups and firms risked disrupting traditional banking business. In particular, growing concern arose over blockchain, the technology that underpins the cryptocurrency bitcoin."

M&CLogo

We shall have a couple of interesting offerings from our own sub-sector of FinTech on site soon. Meanwhile, you can learn more about crowdfunding and P2P lending by visiting our Knowledge Hub.



FOLLOW MONEY&CO. ON TWITTER

Search news

You may put double quotes around your search to search for literals. Max. 4 words inside quotes (dashed words count as one word).

Allowed symbols: " ' & -

More news

2019
DecemberNovember
October
September
August
July
June
May
April
March
February
January
2018
DecemberNovemberOctoberSeptemberAugust
July
June
May
April
March
February
January
2017
December
November
October
September
August
July
June
May
April
March
February
January
2016
December
November
October
September
August
July
June
May
April
March
February
January
2015
December
November
October
September
August
July
June
May
April
March
February
January
2014
December
November
October
September
August
July
June
MayMarchFebruary

Search blogs

You may put double quotes around your search to search for literals. Max. 4 words inside quotes (dashed words count as one word).

Allowed symbols: " ' & -

More from blogs

2019
2018
2017
2016
NovemberOctoberSeptemberAugustJulyJuneMayMarchFebruaryJanuary
2015
DecemberNovemberSeptemberAugustJulyJuneMayAprilMarchFebruaryJanuary
2014
DecemberNovemberOctoberSeptemberAugustJulyJune



Disclaimer: Money&Co.™ is the trading name of Denmark Square Limited, Company Number 08561817, registered in England & Wales, authorised and regulated by the Financial Conduct Authority (FCA). The company is identified on the Financial Services Register under Reference Number 727325. The registered office is 58 Glentham Road, Barnes, London, SW13 9JJ where the register of Directors may be inspected. Denmark Square Limited (ISA manager reference number Z1932) manages the Money&Co. Innovative Finance ISA.