Bank of England Governor: Fintech Brings Great Promise and Risks

Fintech is democratizing financial services, creating new benefits for businesses and consumers, but also posing new risks, Mark Carney, governor of the Bank of England and chair of the Financial Stability Board (FSM), told the Deutsche Bundesbank G20 conference on “Digitizing finance, financial inclusion and financial literacy” in Wiesbaden, Germany.

As the risks emerge, government regulators need to maintain a strong focus on the regulatory perimeter, including a more disciplined management of operational and cyber risks, Carney noted in his presentation. By enabling technologies and managing risks, governments can help create a new financial system for a new age.

The end result will be more choice, better-targeted services and keener pricing for consumers while small and mid-sized businesses will have access to new credit.

Banks will enjoy lower transaction costs, improved capital efficiency and stronger operational resilience.

Most fundamentally, he said, people in financial services will be better connected, better informed and empowered.

The Benefits Will Be Tangible

Carney said millions are entering the digital financial system annually, promising faster economic growth. At the

Read more ... source: CryptoCoinsNews

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