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Published on Monday, June 1, 2020

Document number 20/09

Global | From FinTech to BigTech: an evolving regulatory response

The digital transformation of financial services has opened up the market to new providers: FinTech start-ups and BigTechs. In this article, we explain how policymakers’ mindset should evolve towards a comprehensive response to ensure the financial sector remains safe, stable and open to competition.

Key points

  • Key points:
  • The digital transformation of financial services has led to a new competitive environment characterized first by the unbundling of services by FinTech start-ups and increasingly by the re-bundling within BigTechs’ digital ecosystems.
  • Policymakers responded to the FinTech phenomenon with a piecemeal approach that sought to ensure an adequate control of new risks while promoting innovation-enhancing competition.
  • However, the magnitude and nature of risks are likely to change, as is the nature and degree of competition in the financial industry, with the second wave of competition - the BigTechs.
  • Therefore, policymakers’ mindset should evolve towards a more comprehensive response to ensure the financial sector remains safe, stable and open to competition.

Associated documents for downloading

  • Report (PDF) WP_From_FinTech_to_BigTech_an_evolving_regulatory_response_WB_.pdf English June 1, 2020

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