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?

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

Klaus Loeber, Head of Oversight, European Central Bank

 

  • 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

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

Group discussion led by Jake Middleton, Vice President & Information Security Officer, Federal Reserve Bank of Chicago

  • What are the technological foundations and building blocks of FinTech?
  • What is the state of the art of DLT, Cloud and Machine Learning in 2019?
  • What are the key applications in payments and settlements?
  • What is the impact of FinTech on the financial services industry?

Wednesday - 22 May 2019

Digital Money Projects and Initiatives: The State of the Art

CBDC: Implications for financial stability and monetary policy

Ron Berndsen, Chair of Financial Market Infrastructures and Risk, Tilburg University and former Head of Market Infrastructures Policy Department, De Nederlandsche Bank

 

  • 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

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

James Chapman, Senior Research Director, Funds Management and Banking, Bank of Canada

 

  • 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?

M-Pesa case study: FinTech for financial inclusion

Ravi Ruparel, Board Member, 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

J-coin case study: virtual currency without the volatility

  • 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)

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

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

Sandboxes, incubators and accelerators: coordinating innovation with regulatory compliance

  • 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

Friday - 24 May 2019

Emerging Risks and Challenges  

Tech-based approaches to AML and anti-fraud

Fouad El Berkani, former Technical Specialist, Luxembourg Commission for the Surveillance of the Financial Sector

 

  • 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

Strengthening resilience of digitalised financial ecosystems

Haydn Jones, Founder and Managing Director, Blockhain Hub

 

  • 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

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