The FSB defines 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.

Crypto-assets

This FSB undertakes regular monitoring of the financial stability implications of crypto-assets using a framework developed in collaboration with the Committee on Payments and Market Infrastructures. The FSB provides a forum for its members to discuss supervisory and regulatory approaches to crypto-assets and potential gaps in regulation.

In October 2018 the FSB concluded that while crypto-assets do not pose a material risk to global financial stability at this time, vigilant monitoring is needed in light of the speed of market developments. It also noted that crypto-assets raise several broader policy issues, such as the need for consumer and investor protection; strong market integrity protocols; anti-money laundering and combating the financing of terrorism regulation and supervision, including implementation of international sanctions; regulatory measures to prevent tax evasion; the need to avoid circumvention of capital controls; and concerns relating to the facilitation of illegal securities offerings. These risks are the subject of work at national and international levels.