Fintech: Opportunities, Challenges and Risks to the Financial System

02/04/2019 - 02/08/2019 at SARB Academy, Pretoria , South Africa

Financial technology (fintech) is the new technology and innovation used in the delivery of financial services. Increasingly these technologies compete with and disrupt traditional financial services, including mobile payments, money transfers, loans, fundraising, and asset management.

How much of fintech is hype and how much is reality, and how should policy and regulation respond to this fast-changing industry are the main issues the seminar aims to address. The seminar will explore how fintech technologies could lead to the emergence of new risks, by creating greater volatility and instability, and how central banks and regulators can mitigate potential risks to financial stability and integrity without stifling innovation.

The seminar will examine practical fintech applications. It will explore central bank responses to potential opportunities and challenges arising from cryptocurrencies and examine a range of use cases with distributed ledger technology and the issuance of central bank digital currencies. Discussions will also focus on experiences in Regtech and Suptech and potential risks from their broad adoption. Regtech can be defined as the use of fintech by financial institutions for improving their regulatory compliance and risk management. Similarly, Suptech can be defined as financial supervisors themselves using fintech to improve their supervisory and regulatory processes.