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Granting access to real-time gross settlement systems in the FinTech era
Journal of Payments Strategy & Systems,
14
(4),
363-379
(2020)
Abstract
In light of the fast-growing role of non-bank financial institutions in national payment systems worldwide, this paper explores the experience and practice of central banks with regard to the granting of access to real-time gross settlement (RTGS) systems and considers the related policy issues. Specifically, in their capacity as settlement agencies and operators of their national RTGS systems, many central banks are today considering the merits of extending RTGS access to retail payment service providers (PSPs) other than commercial banks, to include emerging companies that apply technology to the provision of payment or payment-related services. This paper frames the issue within the broader context of whether, and to what extent, access to RTGS systems should be extended to non-bank PSPs. Decades of experience with RTGS systems across countries in different stages of financial sector development, in an increasingly globalised marketplace, have revealed a number of practical problems for central banks, the direct users of RTGS systems, and other beneficiaries of their services. This paper draws on such experience and practice. The paper ends by submitting a few considerations on how RTGS access issues relate to central bank digital currencies.
Keywords: FinTech; RTGS; access; non-bank payment service providers
The full article is available to subscribers to the journal.
Author's Biography
Biagio Bossone is Advisor to Alpha-Elite investment fund; Founder and Chairman of ‘The Group of Lecce’ on Global Governance and Financial Reform; and member of the Centre d’Études pour le Financement du Développement Local. He currently advises the World Bank Group, other international financial organisations, and a number of governments and central banks on financial sector development and stability issues.
Gynedi Srinivas is a senior financial sector specialist at the World Bank, where he provides technical assistance to countries looking to improve the safety, efficiency and reliability of payment and settlement systems and strengthen regulatory and oversight capacity. He has worked as an expert payment system assessor in financial sector assessment programmes in both G20 countries and emerging economies. Srini was previously responsible for payment systems modernisation, policy, oversight and regulation at the Reserve Bank of India. He is also a former Member of the Secretariat of the Bank for International Settlements Committee on Payments and Market Infrastructures.
Holti Banka is a PhD candidate at the School of Public Policy, University of Maryland, focusing on International Development and Economic Policy. He has been involved with projects at the World Bank Group on payment systems. His academic research looks at the cost comparison of using different payment instruments, and at financial inclusion. Holti Banka received his BA in Economics and Mathematics from Williams College, and his MPP from the University of Maryland.
