The Financial Stability Board (FSB) has published a report on FinTech and market structure in financial services.
The digitalisation of finance has the potential to significantly change the current functioning of the global financial system, which raises a number of possible benefits and risks. The FSB monitors digitalisation trends, to assist in harnessing the benefits while mitigating risks. This includes analysis of the financial stability implications of technological innovation.
The report reiterates that technological innovation in financial services gives providers the potential to increase market access, the range of product offerings, and convenience while also lowering costs to clients.
At the same time, new entrants into the financial services space, including FinTech firms and large, established technology companies (BigTech), could materially alter the universe of financial services providers....