NCFAs innovation and funding ecosystem

The Bali Fintech Agenda: A Blueprint for Successfully Harnessing Fintech’s Opportunities

International Monetary Fund | Release | Oct 11, 2018

IMF - The Bali Fintech Agenda: A Blueprint for Successfully Harnessing Fintech’s OpportunitiesThe International Monetary Fund and the World Bank Group today launched the Bali Fintech Agenda, a set of 12 policy elements aimed at helping member countries to harness the benefits and opportunities of rapid advances in financial technology that are transforming the provision of banking services, while at the same time managing the inherent risks.

The Agenda proposes a framework of high-level issues that countries should consider in their own domestic policy discussions and aims to guide staff from the two institutions in their own work and dialogue with national authorities. The 12 elements (see table) were distilled from members’ own experiences and cover topics relating broadly to enabling fintech; ensuring financial sector resilience; addressing risks; and promoting international cooperation.

“There are an estimated 1.7 billion adults in the world without access to financial services,” said IMF Managing Director Christine Lagarde. “Fintech can have a major social and economic impact for them and across the membership in general. All countries are trying to reap these benefits, while also mitigating the risks. We need greater international cooperation to achieve that, and to make sure the fintech revolution benefits the many and not just the few. This Agenda provides a useful framework for countries to assess their policy options and adapt them to their own circumstances and priorities.

“The Bali Fintech Agenda provides a framework to support the Sustainable Development Goals, particularly in low-income countries, where access to financial services is low,” World Bank Group President Jim Yong Kim said. “Countries are demanding deeper access to financial markets, and the World Bank Group will focus on delivering fintech solutions that enhance financial services, mitigate risks, and achieve stable, inclusive economic growth.”

Mrs. Lagarde and Dr. Kim presented the Agenda in a panel discussion today during the Annual Meetings in Bali. They were joined by Sri Mulyani Indrawati, Minister of Finance of Indonesia; Lesetja Kganyago, Governor of the South African Reserve Bank; and Mark Carney, Governor of the Bank of England and Chair of the Financial Stability Board.

With their near universal membership, the Fund and the Bank, are well positioned to gather information from all countries and to reflect on their respective needs and objectives at various levels of economic and technological development. They both also offer a forum for sharing the experience of countries that are not members of international standard-setting bodies on issues such as combating money laundering and terrorism financing, market integrity, and consumer protection. The Financial Stability Board and several other international standard-setters have been reviewing the implications of fintech developments and have indicated regulation and supervision priorities.

See:  Your guide to cryptocurrency regulations around the world and where they are headed

The IMF and World Bank will start developing specific work programs on fintech, as the nature and scope of their members’ needs become clearer, in response to the Bali Fintech Agenda. The IMF’s initial focus will be on the implications for national and global monetary and financial stability; and the evolution of the International Monetary System and global financial safety net.

In response to the Bali Fintech Agenda, the World Bank will focus on using fintech to deepen financial markets, enhance responsible access to financial services, and improve cross-border payments and remittance transfer systems. The Bank will draw on the International Finance Corporation’s growing experience in this area. The Agenda contributes to building the foundations of the digital economy that is a key pillar in the World Bank Group’s larger disruptive technologies engagement.

Executive Board Statement

IMF Executive Directors welcomed the opportunity to consider the Bali Fintech Agenda, and praised the excellent ongoing cooperation between the Fund and World Bank staff in this area, along with other international bodies. Directors broadly endorsed the Agenda as a framework for the consideration of high level fintech issues by individual country members, including in their own domestic policy discussions. They recognized that the Agenda does not represent a work program for the Fund and World Bank Group. Directors concurred that the elements of the Agenda have broad relevance to all member countries and that national authorities should tailor the application of these elements in light of their specific circumstances. This would help reap the benefits of fintech while remaining vigilant about the potential risks and enhancing preparedness to address them. Directors also noted that the elements of the Agenda could apply to both conventional and Islamic financial instruments and products.

While recognizing the rapid pace of fintech development and its uncertain impact, Directors concurred that fintech offers wide ranging possibilities in deepening and enhancing the efficiencies of financial systems, broadening access to financial services—especially in low income countries and for underserved populations—and supporting broader economic development and inclusive growth. They acknowledged the potential risks posed by rapid technological changes to financial systems and individual users and stressed the need for adequate preparation and cross agency coordination by national authorities, including through strengthening of institutional capacity, building up knowledge, improving communication with stakeholders, and expanding consumer education. Directors called on the Fund to stand ready to provide technical assistance, particularly for countries with significant capacity gaps, while facilitating information sharing.

See:  NCFA Canada’s submission to Finance Canada (March 2018): Urgent Need for Regulatory Change and Government Support

Directors generally considered the elements of the Agenda as broadly balanced in pointing out opportunities while acknowledging potential risks of fintech. They agreed on the need to strike the right balance between enabling financial innovation and reinforcing competition and the commitment to open, free and contestable markets on the one hand and addressing challenges to financial integrity, consumer protection, and financial stability on the other.

Directors broadly agreed on the need to augment regulatory and legal frameworks to support the sound development of fintech services and safeguard financial systems. They called for close international cooperation and coordination to address regulatory gaps and prevent the potential risk of a race to the bottom in regulatory compliance, including Anti-Money Laundering/Countering the Financing of Terrorism compliance and the spread of global systemic risks.

Directors called on staff to work closely with the standard setting bodies (SSBs) and relevant international bodies, while avoiding duplication and overlap. They encouraged staff to continuously monitor and analyze fintech developments and consider their implications within the Fund’s mandate, focusing on analytical and country work with respect to cross border capital flows, financial integrity, national and global monetary and financial stability, and the evolution of the International Monetary System and global financial safety net.

ANNEX - The Bali Fintech Agenda

I. Embrace the Promise of Fintech with its far-reaching social and economic impact, particularly in low-income countries, small states, and for the underserved, and prepare to capture its possible wide-ranging benefits, including: increasing access to financial services and financial inclusion; deepening financial markets; and improving cross-border payments and remittance transfer systems. Reaping these benefits requires preparation, strengthening of institutional capacity, expanding outreach to stakeholders, and adopting a cross-agency approach involving relevant ministries and agencies.

II. Enable New Technologies to Enhance Financial Service Provision by facilitating foundational infrastructures, fostering their open and affordable access, and ensuring a conducive policy environment. Foundational infrastructures include telecommunications, along with digital and financial infrastructures (such as broadband internet, mobile data services, data repositories, and payment and settlement services). The infrastructures should enable efficient data collection, processing, and transmission, which are central in fintech advances.

See:  International Anti-Money Laundering Standards for Crypto Expected in October

III. Reinforce Competition and Commitment to Open, Free, and Contestable Markets to ensure a level playing field and to promote innovation, consumer choice, and access to high-quality financial services. The successful and large-scale adoption of technology would be facilitated by an enabling policy framework regardless of the market participant, underlying technology, or method by which the service is provided. Policymakers should address the risks of market concentration, and should foster standardization, interoperability, and fair-and-transparent access to key infrastructures.

IV. Foster Fintech to Promote Financial Inclusion and Develop Financial Markets by overcoming challenges related to reach, customer information, and commercial viability, and by improving infrastructure. The evolving digital economy together with effective supervision are essential in overcoming long-standing barriers to financial inclusion across a broad range of financial services and in enabling developing countries to leverage promising new pathways for economic and financial development to support growth and alleviate poverty. Examples include expanding access to finance while reducing costs, providing new ways to raise funding, enabling new information services to assess risks, and spurring new businesses. To achieve these goals, fintech issues should be part of a national inclusion and financial and digital literacy strategies, while fostering knowledge-sharing between public- and private-sector players, civil society, and other stakeholders.

V. Monitor Developments Closely to Deepen Understanding of Evolving Financial Systems to support the formulation of policies that foster the benefits of fintech and mitigate potential risks. The rapid pace of fintech will necessitate improvements and possible extensions in the reach of monitoring frameworks to support public-policy goals and to avoid disruptions to the financial system. Information-sharing and exchange would support improved monitoring. Achieving these objectives brings out the importance of continuous monitoring—including by maintaining an ongoing dialogue with the industry, both innovators and incumbents—to identify emerging opportunities and risks, and to facilitate the timely formation of policy responses.

VI. Adapt Regulatory Framework and Supervisory Practices for Orderly Development and Stability of the Financial System and facilitate the safe entry of new products, activities, and intermediaries; sustain trust and confidence; and respond to risks. Many fintech risks might be addressed by existing regulatory frameworks. However, new issues may arise from new firms, products, and activities that lie outside the current regulatory perimeter. This may require the modification and adaptation of regulatory frameworks to contain risks of arbitrage, while recognizing that regulation should remain proportionate to the risks. Holistic policy responses may be needed at the national level, building on guidance provided by standard-setting bodies.

Continue to the full article --> here


NCFA Jan 2018 resize - The Bali Fintech Agenda: A Blueprint for Successfully Harnessing Fintech’s Opportunities The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org

Latest news - The Bali Fintech Agenda: A Blueprint for Successfully Harnessing Fintech’s OpportunitiesFF Logo 400 v3 - The Bali Fintech Agenda: A Blueprint for Successfully Harnessing Fintech’s Opportunitiescommunity social impact - The Bali Fintech Agenda: A Blueprint for Successfully Harnessing Fintech’s Opportunities

FFCON21 ON-DEMAND VIDEOS NOW AVAILABLE!



FFCON21 on demand videos - The Bali Fintech Agenda: A Blueprint for Successfully Harnessing Fintech’s Opportunities

Support NCFA by Following us on Twitter!






IMF Blog | Tobias Adrian and Rhoda Weeks-Brown | Jul 26, 2021 New digital forms of money have the potential to provide cheaper and faster payments, enhance financial inclusion, improve resilience and competition among payment providers, and facilitate cross-border transfers. But doing so is not straightforward. It requires significant investment as well as difficult policy choices, such as clarifying the role of the public and private sectors in providing and regulating digital forms of money. Some countries may be tempted by a shortcut: adopting cryptoassets as national currencies. Many are indeed secure, easy to access, and cheap to transact. We believe, however, that in most cases risks and costs outweigh potential benefits. Cryptoassets are privately issued tokens based on cryptographic techniques and denominated in their own unit of account. Their value can be extremely volatile. Bitcoin, for instance, reached a peak of $65,000 in April and crashed to less than half that value two months later. See:  Ripple Pilots a Private Ledger for Central Banks Launching CBDCs And yet, Bitcoin lives on. For some, it is an opportunity to transact anonymously—for good or bad. For others, it is a means to diversify portfolios and hold a speculative asset that can bring ...
Read More
cryptoassets - The Bali Fintech Agenda: A Blueprint for Successfully Harnessing Fintech’s Opportunities
Crowdfund Insider | JD Alois | Jul 26, 2021 Recently, a report was published regarding the European Commission distributing European (ESIF) funds through European crowdfunding platforms. Obviously, if this occurs it will be a boon for both platforms and issuers. The report was written by Karsten Wenzlaff, Ana Odorovic and Ronald Kleverlaan, along with consulting firm PwC. The authors are well known in the European Fintech and crowdfunding sectors. Crowdfund Insider connected with the authors of the report. Wenzlaff told CI: “The Structural and Investment Funds (ESIF) are the main instrument for the European Union to create long-term growth and cohesion and achieve the policy objectives – it is a huge budget which has increased again for the next budget period 2021-2027. The way it works is that each country gets a certain amount and then the so-called Managing Authorities (MAs) are in charge of distributing the funds according to guidelines by the European Commission. These Managing Authorities are often Ministries for Infrastructure or Development Agency. The vast amount of funds is distributed through grants.” Wenzlaff explained that the breakthrough of this report is because, for the first time, the European Commission has created templates for the collaboration between the MAs ...
Read More
European government funding - The Bali Fintech Agenda: A Blueprint for Successfully Harnessing Fintech’s Opportunities
Financial Post | Amy ter Haar | Jul 29, 2021 The London Hard Fork represents a big step toward an overarching upgrade of the network known as Ethereum 2.0 The Ethereum network is one of the most established and probably the most used blockchains today. Its toolkit of functions has enabled it to become the home for multiple stablecoins, countless NFTs (non-fungible tokens), dapps (decentralized applications) and DeFi projects (decentralized finance projects). Moreover, its native digital asset, ETH (Ether), holds the position of second-largest cryptocurrency value by market cap. However, Ethereum’s explosive growth over the past six years has resulted in an energy intensive, expensive and inefficient blockchain that must now overcome some of these pain points. Enter, the London Hard Fork. On Aug. 4 at block 12,965,000, the London Hard Fork will go live on the Ethereum main network when a series of five protocol updates called EIPs (Ethereum Improvement Proposals) are deployed. See:  Ethereum cryptocurrency to slash carbon emissions The series of EIP upgrades require miners and nodes to update their software in order to keep interacting with Ethereum’s blockchain. Since the upgrade is not backward-compatible, it is known as a ‘hard fork’ — if a node doesn’t ...
Read More
Aug 3 Ethereum London hard fork - The Bali Fintech Agenda: A Blueprint for Successfully Harnessing Fintech’s Opportunities
Guest Post | Jul 29, 2021 Sticking to manual lease accounting processes and compliance with relevant standards can be a huge nightmare. The solution? Use Trullion, a dependable software that uses AI to automate and simplify your lease accounting workflows and compliance processes. In this review, we’ll look into how Trullion can help you establish seamless lease accounting processes and make complying with the required standards more efficient. What is Trullion? Trullion is an Artificial Intelligence or AI-powered Software as a Service (SaaS) platform that automates lease accounting workflows for auditors, Chief Financial Officers (CFOs), and accountants. The platform combines the structured and unstructured aspects of accounting by reading Excel and PDF files and turning them into financial workflows,   revenue recognition and lease accounting. Trullion is designed to provide a solution to accounting process silos most Enterprise Resource Planning (ERP) and accounting firms often fail to address. See:  Top 12 AI Use Cases: Artificial Intelligence in FinTech It can give you a 360° real-time view of your financial data, extract information from source documents and connect them to your audit trail, and speed up your ASC 842, IFRS 16, GASB 87 compliance process. Main features and functionalities Essentially, Trullion ...
Read More
Trullion home - The Bali Fintech Agenda: A Blueprint for Successfully Harnessing Fintech’s Opportunities
Crowdfund Insider | JD Alois | Jul 28, 2021 LendingClub (NYSE:LC), a Fintech that started as a peer-to-peer lender and now operating as a digital bank, has posted strong 2nd quarter results that easily topped expectations. LendingClub finally turned the corner on profitability shredding guidance that had expected a loss. Shares moved considerably higher in after-hours trading during a crowded earnings announcement day. At the start of 2021, LendingClub completed the acquisition of Radius Bank thus entering the red hot digital banking sector. This quarter is the first earnings round as a nationally chartered digital bank. According to LendingClub sequential revenue increased by 93%, driven by growth in marketplace lending revenue and increased net interest income from the retained portfolio of consumer loans. Total revenue was $204.4 million, almost double the previous quarter, with net income jumping to $9.4 million – in stark contrast to the $47.1 million loss delivered in Q1. See:  Why LendingClub’s Acquisition Of Radius Bank Is A Smart Deal The fact that LendingClub will now be able to hold deposits as a bank means a lower cost of funding for its online lending segment. LendingClub CEO Scott Sanborn, issued the following statement: “Our first full quarter ...
Read More
lending club rebound - The Bali Fintech Agenda: A Blueprint for Successfully Harnessing Fintech’s Opportunities
Wired | Bhaskar Chakravorti | Jul 27, 2021 A handful of companies have outsize influence on the world’s artificial intelligence. Policymakers must act now to stem the rise of powerful monopolies. Without intervention, AI could also help undermine democracy–through amplifying misinformation or enabling mass surveillance. The past year and a half has also underscored the impact of algorithmically powered social media, not just on the health of democracy, but on health care itself. The overall direction and net impact of AI sits on a knife's edge, unless AI R&D and applications are appropriately channeled with wider societal and economic benefits in mind. How can we ensure that? A handful of US tech companies, including Amazon, Alibaba, Alphabet, Facebook, and Netflix, along with Chinese mega-players such as Baidu, are responsible for $2 of every $3 spent globally on AI. They’re also among the top AI patent holders. Not only do their outsize budgets for AI dwarf others’, including the federal government’s, they also emphasize building internally rather than buying AI. Even though they buy comparatively little, they’ve still cornered the AI startup acquisition market. See:  Nobel-winning Psychologist: ‘Clearly AI is going to win. How people are going to adjust is a ...
Read More
AI - The Bali Fintech Agenda: A Blueprint for Successfully Harnessing Fintech’s Opportunities
CSA | Jul 28, 2021 Vancouver – The Canadian Securities Administrators (CSA) is proposing to introduce a new prospectus exemption for issuers listed on a Canadian stock exchange that is expected to provide a more efficient way for them to raise capital. “We’ve heard from market participants that the time and cost to prepare a short form prospectus is a barrier to capital raising for many smaller issuers,” said Louis Morisset, CSA Chair and President and CEO of the Autorité des marchés financiers. “The proposal would reduce regulatory burden, while maintaining robust investor protection.” The proposed Listed Issuer Financing Exemption is expected to reduce costs for issuers raising smaller amounts of capital through the public markets. It would also allow smaller issuers greater access to retail investors and provide retail investors with a broader choice of investments. The prospectus exemption would not be available to issuers that have been a reporting issuer for less than 12 months, nor to issuers that have not filed all continuous disclosure documents required under Canadian securities legislation. Eligible issuers would file a short offering document and the securities they issue would be freely tradeable. Under the proposed exemption, issuers could raise up to the greater ...
Read More
Raising capital burden reduction - The Bali Fintech Agenda: A Blueprint for Successfully Harnessing Fintech’s Opportunities
Guest Post | Jul 28, 2021 Image:  Pixabay When buying a home, there are plenty of important factors a lender will consider when deciding whether or not to give you a mortgage. They will think about your income, your down payment, your other debts, and of course, your credit score. Your credit score is essentially a snapshot of your history as a borrower. The higher the score, the less risky you are to lend money to, in most cases. While most with an average credit score or above average will be fine, those who are below might experience a bit more trouble. But thankfully, you aren’t doomed to have a bad credit score forever. Read on as we go over some of the best ways to quickly raise your score to buy a home. Remove Negative Items on Your Credit Report Perhaps the fastest and most affordable way to raise your credit score is to remove negative items from your credit report. These generally include collections and inquiries. While each one might only hurt your credit a bit, if they pile up, it can have a major impact. Be sure to go through your report and ensure you do all ...
Read More
digital bank - The Bali Fintech Agenda: A Blueprint for Successfully Harnessing Fintech’s Opportunities
Guest Post | Jul 28, 2021 Over 80% of enterprises fail due to cash flow problems. The figure is a dead giveaway of why you need to minimize your expenses. After all, reducing your business costs has a direct impact on your cash flow. Not only does it help you pocket more money, but it also bolsters your business financially. If you’re looking for tried and tested tips to reduce your business costs, consider following the tips below. 1. Invest in preventive measures Risks are inevitable for businesses, and when they happen, they often eat up a considerable chunk of your profits. To avoid experiencing the financial nightmare that comes from unforeseen threats, you must set preventive and protective measures to mitigate risks. For instance, if you invested in creating an app for your business, you need to ensure your critical business codes are protected against system failure or cybercriminals. An effective way of doing this is to back up your codes regularly. To avoid spending countless hours running your backups, which increases your business cost, run automatic DevOps backups. That way, your backups are done with very little to no workforce hours needed, and you know your code is ...
Read More
Reducing business costs - The Bali Fintech Agenda: A Blueprint for Successfully Harnessing Fintech’s Opportunities
Bitcoin.com  | Sergio Goschenko | Jul 27, 2021 Goldman Sachs, one of the biggest banking institutions in the world, has filed an application to offer an Exchange Traded Fund (ETF) linked to the performance of decentralized finance (defi) companies. The instrument, if approved, would help institutions and retail investors gain exposure to defi assets with the help of a regulated bank like Goldman Sachs. Goldman Sachs Proposes Defi ETF Goldman Sachs, one of leading commercial banks in the world, has introduced an application to the SEC to offer a defi-linked ETF. The defined ETF is called “Goldman Sachs Innovate Defi and Blockchain Equity ETF,” and it would seek to provide exposure to these technologies for regulated institutions. The performance of the fund would be linked to the Solactive Blockchain Technology Performance-Index. See:  10 Highlights From Goldman Sachs’ June 2021 Digital Asset Thought Piece This index follows a portfolio of tech industries that are invested in blockchain technologies. The index includes companies like Nokia, Alphabet, IBM, Microsoft, and Overstock. This would be the first ETF that aims to capitalize on the popularity that the defi sector has experienced this year. As Bitcoin.com News reported in June, Goldman Sachs has been courting ...
Read More
Goldman Sachs  - The Bali Fintech Agenda: A Blueprint for Successfully Harnessing Fintech’s Opportunities