How disruptive are FinTech and digital for banks and regulators?
Abstract
This paper investigates how disruptive FinTech and digital are for banks and regulators. Banks have always made use of new technologies to deliver banking products in more effective ways. This process continues today. Technological change not only results in more risk such as cyberattacks and money laundering, but also opens up new opportunities for banks and their customers. Banks have adapted their business models accordingly. They partner with FinTech to develop and deliver new technologies. Regulators and supervisors change as well, moving gradually in the FinTech space, helping them to develop their activities and starting to regulate their services. So even though FinTech and digital can be disruptive indeed — both for banks and regulators — they also create a new cross border ecosystem whereby banks and tech companies interact and compete, while regulators and supervisors adapt their oversight, leading to better financial services for customers and higher added value for society, provided that a level playing field is ensured.
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Author's Biography
Hedwige Nuyens is the Managing Director of the International Banking Federation (IBFed). Previously, she was Head of Regulatory Affairs for BNP Paribas, Chief Financial Officer of the Catholic University Louvain and Chief Risk Officer. of ABN Amro Bank in Belgium. Hedwige holds a faculty of law and master’s in financial sciences from the Catholic University Louvain and a master’s in business administration and finance from the EHSAL Brussels. The International Banking Federation was formed in 2004 to voice the combined views of national banking associations, now covering more than 95 per cent of the banking industry with Europe, the USA, Canada, Japan, Australia, China, India, Korea, South Africa and Brazil. The IBFed actively engages with international standard setters and global supervisory bodies on subjects with an international dimension or with an important impact for its members.
Citation
Nuyens, Hedwige (2019, June 1). How disruptive are FinTech and digital for banks and regulators?. In the Journal of Risk Management in Financial Institutions, Volume 12, Issue 3. https://doi.org/10.69554/PBQH2788.
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