FinTech: Opportunities and Challenges in Payment Systems

FinTech: Opportunities and Challenges in Payment Systems

FinTech: Opportunities and Challenges in Payment Systems

Course chair: Richard Heckinger, former Vice President and Senior Policy Adviser, Federal Reserve Bank of Chicago

Tuesday - 21 May 2019

The Payments Revolution in Focus

Financial market innovation: new opportunities and hidden risks

Richard Heckinger, former Vice President and Senior Policy Adviser, Federal Reserve Bank of Chicago

 

  • The state of the art of Financial Technology in 2019
  • Key forces, trends and dynamics shaping financial market innovation
  • Unavoidable risks, critical challenges and emerging opportunities
  • Discussion: How do central banks need to change to make the most of FinTech?

What is the true capability of DLT, Cloud and Machine Learning?

Cordelia Kafetz, Head of FinTech Hub and former Senior Manager, Future of Money Team, Bank of England

 

  • Evolution of technological foundations and building blocks of FinTech
  • Overview of key technologies in the areas of DLT, Cloud and Machine Learning
  • Examples of applications in payments and settlements
  • Discussion: What is the impact of FinTech on the financial services industry?

RegTech for FinTech: how to regulate and supervise privately issued crypto assets?

Panel with Cordelia Kafetz, Head of FinTech Hub and former Senior Manager, Future of Money Team, Bank of England and Alexander Berentsen, Dean of the Faculty of Business and Economics, University of Basel and Senior Research Fellow, Federal Reserve Bank of St. Louis

 

  • Key risks (and opportunities) of privately issued crypto assets
  • Tips for effectively managing financial stability implications of ‘Bitcoins’ on both local and systemic levels
  • Examples of cross-jurisdictional regulatory and supervisory cooperation and coordination
  • Discussion: Central bank issued digital currencies as an alternative to Bitcoin

Wednesday - 22 May 2019

Digital Money Projects and Initiatives: The State of the Art

CBDC: Implications for financial stability and monetary policy

Alexander Berentsen, Dean of the Faculty of Business and Economics, University of Basel and Senior Research Fellow, Federal Reserve Bank of St. Louis

 

  • Differences and overlaps between privately issued crypto assets and central bank digital currencies (CBDC)
  • Opportunities and risks of CBDC for monetary policy implementation
  • Impact of CBDC on financial services providers and systemic stability
  • Discussion: How to manage cross-country flows of digital money?

E-Krona case study: a digital complement to cash

Hanna Armelius, Advisor, Sveriges Riksbank

 

  • Key features and frameworks of the E-Krona project
  • Prospects of E-Krona as a complement to – or replacement of – physical currency
  • The role of communication with – and feedback from – the public
  • Overview of necessary legislative and regulatory amendments for a systematic E-Krona issuance

J-coin case study: virtual currency without the volatility

Hiromi Yamaoka, Director General of the Payment and Settlement Systems Department, Bank of Japan (invited)

 

  • Overview of motivations behind the J-coin initiative
  • Roles and responsibilities of the central bank, regulator and the commercial financial institutions in the J-coin issuance and oversight
  • Opportunities and challenges of cooperation with the smartphone industry
  • Expected implications for the future of cash (in Japan)

M-Pesa case study: FinTech for financial inclusion

Mohammed Nyoaga, Chairman of the Board, Central Bank of Kenya

 

  • Evolution of M-Pesa as a mobile money service
  • Examples of new tools, applications and innovations
  • The role and potential of M-Pesa projects in national financial inclusion strategies
  • Tips to overcome issues in the areas of financial crime and consumer protection

Projects Jasper case study: can a distributed ledger service a core wholesale payment system?

Scott Hendry, Special Director, Financial Technology, Funds Management and Banking Strategic Leadership, Bank of Canada (invited)

 

  • Motivations and technological foundations behind the Project Jasper
  • Assessment of the lessons learnt from the first three phases of the project
  • Overview of the next steps and prospect for the following phases
  • Discussion: Can a distributed ledger service a core wholesale payment system?

Thursday - 23 May 2019

Towards a New Regulatory Framework

Regulating FinTech: balancing innovation with consumer protection

Brian Knight, Senior Research Fellow, George Mason University

 

  • Overview of policies and approaches to regulation and supervision of FinTech
  • Examples of strategies, frameworks and indicators helping to balance the support for innovation with consumer protection
  • Implications for resourcing and institutional organisation of central banks and regulators
  • Discussion: Successes and challenges from the delegates’ home jurisdictions

Sandboxes, incubators and accelerators: coordinating innovation with regulatory compliance

Sopnendu Mohanty, Chief FinTech Officer, Monetary Authority of Singapore (invited)

 

  • Strategies helping innovation comply with legal and regulatory requirements
  • Issues of funding and resourcing
  • Potential for cross-jurisdictional cooperation
  • Case study: Monetary Authority of Singapore’s FinTech Regulatory Sandbox – success stories and steps to be avoided

Solving the cross-border payments issue: execution and oversight in focus

Marjan Delatinne, Global Head of Banking, Ripple and Danijela Piljic, Strategy Advisor, The Netherlands Bank

 

  • Overview of applications of DLT to cross-border payment frameworks
  • Key operational risks associated with the new market platforms
  • Implications for legal and regulatory frameworks
  • Examples of cross-jurisdiction regulatory and supervisory cooperation and coordination

Friday - 24 May 2019

Emerging Risks and Challenges  

Strengthening resilience of digitalised financial ecosystems

Wiebe Ruttenberg, Program Director, Cyber Resilience Strategy, European Central Bank (invited)

 

  • Overview of financial, operational and regulatory risks for infrastructures based on computer systems and digital information
  • Examples of systemic implications of successful cyber attacks
  • Key features of effective cyber resilience frameworks and strategies
  • The role of cross-industry guidance and public-private cooperation and coordination

Tech-based approaches to AML and anti-fraud

Dany Sanhye, International Consultant, Financial Crime

 

  • Overview of key financial crime risks of the digital era
  • Examples of Blockchain and Machine Learning applications in KYC and KYCC
  • Opportunities and risk of automated vs. manual Fraud and AML investigation
  • The role of international and public-private cooperation and coordination

Course conclusion and delegate action points

Led by the chair, Richard Heckinger

 

  • Summary of the training course
  • Discussion of the observed trends and case studies
  • Application of learning points in the delegates’ home organisations
  • Preparation of action points