Regional : Strengthening Regional Cooperation and Knowledge Sharing on the Application of Technology in Financial Services

Finance / Finance sector development

The expected impact of the TA is better understanding and management of the impact of financial technology on financial services, inclusion and stability, and strengthened policy and regulatory cooperation in Asia and the Pacific. The TA will have the following outcome: enhanced knowledge of policymakers, regulators, and the private sector to address emerging financial technology-related issues for financial inclusion and stability.

Outputs include: (1) Knowledge products on the building blocks of FinTech, emerging FinTech trends, and key issues on FinTech, financial inclusion, and financial stability in the Asia and the Pacific region, produced and disseminated. These studies will extend the analysis on current trends and outlook in FinTech developments, and also discuss policy gaps on how the region's policymakers can shape an enabling business and regulatory environment to help maximize the benefits of FinTech while addressing associated risks and challenges; (2) Policy toolkits that are important to support policymaking in an open, data-driven, and client-focused manner designed and delivered. FinTech-related policies are presently lagging behind the developments in a fast, changing, digital world. Hence, there is a need to design, develop, and organize policy toolkits comprising of various types of knowledge and skillssuch as description of available technology, discussions of how they can interface with the delivery of financial services, discussion of possible issues and challenges, stories on lessons learned, and identification of best practices and innovative solutionsthat can help policymakers shape the right kind of policy and regulatory landscape for their respective countries in the region; and (3) Knowledge and skills enhanced and shared through workshops to discuss policy and regulatory issues and toolkits on the application of technology to expand financial services and inclusion while maintaining stability, organized. Through the TA, ERCI will organize four workshops jointly with think tanks and leading universities in the region. The workshop will invite 20-30 participants each from both public and private sectors. Participants from government agencies such as Ministry of Finance and Ministry of Science and Technology will be invited to share their experiences and concerns. Private sector participants will also be invited to share their experience. Key findings of the knowledge products and policy toolkits will also be disseminated in the workshops which will also provide a forum to exchange experiences and knowledge among government officials, regulators, bankers, entrepreneurs, and academic scholars.

Digital technology is transforming lives in the Asia and the Pacific region. With 5 billion mobile phone subscribers today, digital technology has been closely integrated in our daily lives delivering transformative impact in the provision of health services, delivery of education, and access to finance. As a result, the financial services landscape in the region is changing with the widespread application and adoption of financial technology (FinTech), improving access to credit, cutting borrowing costs, and enhancing financial inclusion for the underserved households and small- and medium-sized enterprises. However, it has also generated new risks and challenges which are presenting profound concerns and challenges to policymakers and regulators regarding their financial stability impacts in the region.

Against this background, this TA will aim to enhance and further extend our understanding of the recent trends, the key building blocks, and the impact of FinTech on financial services, inclusion and stability in the Asia and the Pacific region. It will also examine the enabling business environmentadministration, policies, and regulationsthat is critical to support its growth and manage the attendant risks that emerge from FinTech. In order to do this, the TA will work with qualified think tanks to develop high-quality knowledge products and databases that can contribute to greater regional cooperation in building appropriate policy and regulatory frameworks such as harmonizing regulatory standards or guidelines for data and consumer protection through knowledge sharing. It will also support capacity building seminars for policymakers, regulators, bankers, and entrepreneurs; and will disseminate the knowledge products on how FinTech can enhance the delivery of financial services to expand financial inclusion, while safeguarding financial stability.

Better understanding and management of the impact of financial technology on financial services, inclusion and stability and strengthened policy and regulatory cooperation in Asia and the Pacific.

Enhanced knowledge of policymakers, regulators, and the private sector to address emerging financial technology-related issues for financial inclusion and stability.

Knowledge on building blocks of FinTech, emerging FinTech trends, and key issues on FinTech, financial inclusion, and financial stability in the Asia and the Pacific region strengthened.

Policymaking supported in a more open, data-driven, digital, and user-centered way through designed and delivered policy toolkits, comprising of knowledge, skills, lessons learned, and best practice

Knowledge and skills enhanced and shared through workshops to discuss emerging issues of financial technology, inclusion, and stability