Technology-enabled innovation is transforming the financial services. There are two major categories actors that perform activities that are traditionally performed by the banks through better implementation of technology: Fintechs are independent non-bank institutions, Techfins are big global technology companies. The emergence of Techfins as data intermediaries expanding into the financial services industry resulting in regulatory risks and challenges. The G20 should therefore prioritize development of fintech as an agenda item. To this end, we propose the G20 to establish regulatory principles to enable better cooperation of the Fintechs and the banks, provide best practices for the establishment of financial regulatory sandboxes and government-led investment and cooperation schemes. The G20 can establish a G20 Fintech Working group to lead this agenda.
Ussal Şahbaz, CEO at EDAM