Financial Innovation

The FSB defines Financial Innovation (“FinTech”) as technologically enabled innovation in financial services that could result in new business models, applications, processes or products with an associated material effect on financial markets and institutions and the provision of financial services. FinTech innovations are affecting many different areas of financial services.

The FSB, working with other international organisations, is monitoring FinTech activities and assessing their implications for financial stability. This work draws on the expertise of standard-setters and surveys of national authorities’ supervisory and regulatory approaches to FinTech activity. The FSB’s Financial Innovation Network looks at FinTech innovations from the perspective of financial stability. Among the issues that the FSB has considered and published reports on are the role of large technology companies providing financial services (BigTech), the use of technology by supervisors (SupTech) and the use of technology by regulated institutions to meet regulatory requirements (RegTech).

Analytical work has also focused on areas such as FinTech credit, digital currencies, distributed ledger technology, artificial intelligence and machine learning. This work has resulted in a better understanding of the benefits and risks FinTech may pose and is part of an ongoing dialogue between public, private and academic stakeholders..

Key Documents

Final Report on Enhancing Third-party Risk Management and Oversight – A Toolkit for Financial Institutions and Financial Authorities

The toolkit provides definitions and tools to help financial institutions to monitor, identify and manage risks arising from third-party services.

FinTech and Market Structure in the COVID-19 Pandemic: Implications for financial stability

Report analyses evolution of retail digital financial services provision by BigTechs, FinTechs and incumbent financial institutions during the COVID-19 pandemic.

BigTech firms in finance in emerging market and developing economies

Market developments and potential financial stability implications of the growth in BigTech financial services in emerging market and developing economies.

The Use of Supervisory and Regulatory Technology by Authorities and Regulated Institutions: Market developments and financial stability implications

Market developments and financial stability implications of the use of SupTech and RegTech.

BigTech in finance: Market developments and potential financial stability implications

Market developments and potential financial stability implications of the entry of BigTech in financial services.

Third-party dependencies in cloud services: Considerations on financial stability implications

Financial stability implications of third party dependencies in cloud services by financial institutions.

Decentralised financial technologies: Report on financial stability, regulatory and governance implications

Report on the use of distributed ledger technologies and peer-to-peer lending.

FinTech and market structure in financial services: Market developments and potential financial stability implications

Assessment of the impact of FinTech on the structure of the financial system.

Artificial intelligence and machine learning in financial services

A report on the financial stability implications of artificial intelligence and machine learning in finance.

Cambridge Centre for Alternative Finance – Regulatory and Supervisory Issues from FinTech

Keynote speech by Svein Andresen, Secretary General of the Financial Stability Board, at the Cambridge Centre for Alternative Finance conference on Navigating the Contours of Alternative Finance.

Financial Stability Implications from FinTech

FSB analyses the potential financial stability implications from FinTech.

FinTech Credit: Market Structure, Business Models and Financial Stability Implications

FSB and CGFS report considers trends in the growth of FinTech credit.

The Promise of FinTech – Something New Under the Sun?

Speech given by Mark Carney, Governor of the Bank of England and Chair of the Financial Stability Board, for the G20 conference on “Digitising finance, financial inclusion and financial literacy”, Wiesbaden.

Chatham House – The Banking Revolution

Remarks given by Svein Andresen, Secretary General of the Financial Stability Board, at the Chatham House conference on The Banking Revolution: Global Regulatory Developments and their Industry Impact.