Basel Fintech and Financial Inclusion


On Feb. 12, Basel issued paper on fintech and financial inclusion.


  • Follows Basel Feb. 2020 issued paper on cross-border fintech adoption, see #71345.
  • Scope
  • A new Basel working paper, On fintech and financial inclusion, investigates several areas, including whether rise of fintech has reduced financial intermediation unit costs.
  • Also analyzes features of new financial technologies that have met with controversial responses: returns to scale, together with the use of big data and machine learning.
  • Explores whether the potential efficiency gains that fintech could bring will be shared equally, or whether it could increase inequality by favoring some groups over others.
  • Findings
  • Unit cost for financial intermediation unit cost has fallen since the great financial crisis.
  • The paper therefore concludes that fintech has improved financial sector efficiency.
  • Machine learning/big data likely to reduce human biases in credit market, but could also reduce the effectiveness of existing policies aimed at protecting minority groups.

Regulators Basel
Entity Types B/D; Bank; Corp; MSB
Reference WP 841, 2/12/2020; Fintech
Functions Financial; Reporting; Risk; Suitability; Technology; Treasury
Countries Global Regulator
Products Banking; Corporate; Payments
Regions Global
Rule Type Guidance
Rule Date 2/12/2020
Effective Date 2/12/2020
Rule Id 71811
Linked to Rule :71345
Reg. Last Update 2/12/2020
Report Section International

Last substantive update on 02/13/2020