Leveraging on Fintech Innovations for Financial Inclusion · 2019-09-24 · Leveraging on Fintech...
Transcript of Leveraging on Fintech Innovations for Financial Inclusion · 2019-09-24 · Leveraging on Fintech...
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Leveraging on Fintech Innovations for Financial Inclusion
FRANCISCO G. DAKILA, JR.Deputy Governor
Monetary and Economics Sector
5th Annual Public Policy Conference“Navigating the New Globalization: Local Actions for Global Challenges”September 19, 2019, Sofitel Philippine Plaza Hotel, Manila, Philippines
![Page 2: Leveraging on Fintech Innovations for Financial Inclusion · 2019-09-24 · Leveraging on Fintech Innovations for Financial Inclusion FRANCISCO G. DAKILA, JR. Deputy Governor Monetary](https://reader036.fdocuments.us/reader036/viewer/2022081405/5f09813a7e708231d42724c7/html5/thumbnails/2.jpg)
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Benefits
• Lower costs
• Greater accessibility
• Increased speed, efficiency and convenience
• May lead to more stable credit environment
Risks
• Concerns in consumer protection
o Loss of funds
o Improper use of personal data
• Possible use for money laundering and terrorist financing purposes
Weighing the benefits and risks
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Fintech is likely to have a greater impact through key transformational mechanisms…
Source: DTCC: “Fintech and Financial Stability” (October 2017)
Implications on the Financial System (Banks)
Disaggregation of financial services
Disintermediation of incumbents
Decentralization of networks
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Test-and-Learn
Approach
BSP Regulatory Framework – Striking the Right Balance
Allow for market to develop
Proceed with flexibility yet with
caution
Understand operating/business
model
Adopt appropriate regulatory approach
Closely monitor developments and
related issues
(3) Consumer Protection
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Network Building through Coordination and Cooperation
Financial Sector Forum (FSF)FinTech Committee
Domestic Level Regional Level
FinTech Collaboration Agreement
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Promoting Financial Inclusion
Source: BSP
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Adoption of RegTech Solutions
API System
Automated Complaint-Handling Portal
(Chatbot)
FI Portal
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National Retail Payment System (NRPS)
NRPS is a policy and regulatory framework that aims to establish a safe, efficient,reliable, affordable and inclusive retail payment system in the Philippines.
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Key Messages
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1. Commensurate regulations to promote innovations and competitions while mindful of consumer protection issues and financial stability risks;
2. Collaborative engagements with stakeholders to create synergy and sustainable long-term partnership;
3. Capacity building to protect/retain institutional knowledge assets, coupled with upgrading network hardware and software infrastructure to protect against cybersecurity threats.
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Leveraging on Fintech Innovations for Financial Inclusion
FRANCISCO G. DAKILA, JR.Deputy Governor
Monetary and Economics Sector
5th Annual Public Policy Conference“Navigating the New Globalization: Local Actions for Global Challenges”September 19, 2019, Sofitel Philippine Plaza Hotel, Manila, Philippines