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Innovative yet robust supervision in a rapidly changing payments landscape
Journal of Digital Banking,
3
(3),
232-241
(2019)
Abstract
The payments landscape is constantly changing, and developments are accelerating. One of the main driving forces is technological innovation. Although it is a source of opportunities, technological innovation poses challenges to the robustness and efficiency of the payments system and financial stability in general. This paper describes how De Nederlandsche Bank (DNB) facilitates the positive contribution of technological innovation in payments, while ensuring the risks are properly monitored and addressed. It highlights how DNB endeavours to promote an innovative climate through an InnovationHub and Regulatory Sandbox, and dives into the challenges of the growing complexity and fragmentation of the payments landscape and increased vulnerability to cyberattacks. The paper further discusses DNB’s role in finding a right balance between innovation, safety and privacy, especially given the expected changes arising from the new Payment Services Directive (PSD2). Finally, the paper demonstrates how DNB takes advantage of technological innovation by employing advanced innovative techniques in its daily work.
Keywords: FinTech; digitalisation of payments; PSD2; principle-based regulation; cyber resilience; crypto
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Author's Biography
Anneke Kosse is a Senior Policy Adviser and Researcher at the Market Infrastructures Policy Department of the Nederlandsche Bank (DNB). She is the lead author of DNB’s recently published Payments Strategy 2018–2021 and the project leader for DNB’s work on central counterparties (CCP) resolution and resolution planning. Her research activities are focused on financial inclusion and liquidity in large-value payment systems. She has a strong background in retail payments. From 2006 to 2014, she worked at DNB’s Payments Systems Policy Department, studying consumers’ and retailers’ payment behaviour, and from 2014 to 2017, she worked at the Bank of Canada, where she led the Bank of Canada’s Cost of Payments Study. She holds a PhD in Business and Economics from Tilburg University and a Master’s degree in International Development Studies from Wageningen University.
Petra Hielkema is Division Director Payments and Market Infrastructure at the Dutch Central Bank. The division is the operator of the Dutch Central Bank and is responsible for oversight as well as research and policy related to payments and market infrastructure, including Big Data analysis, distributed ledger technology (DLT)/cryptos and CCPs. Further, the Cyber Intelligence Unit of the Central Bank is part of her division, as is the TIBER-NL programme (Threat Intelligence Based Ethical Red teaming). She joined the Dutch Central Bank in February 2007 and worked in the supervisory policy division. In 2013 she became Head Insurance Policy, and in 2015 she was appointed Head of the DNB Expert Center for Fit & Proper testing, assessing (supervisory and management) board members in the financial sector. Prior to joining the Dutch Central Bank, she had an international career in the oil and gas industry. She is a member of the Committee on Payments and Market Infrastructures (CPMI) as well as the CPMI/IOSCO Steering Group. She is co-chair of the fmiCBCM (financial market infrastructures Cross Border Crisis Management) working group of the Financial Stability Board. She is also a member of the Supervisory Board and Executive Committee of Child and Youth Finance International. She has a European Master’s degree in Law and Economics and a Master’s degree in Russian Studies.
