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.
- 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.
- 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.
||B/D; Bank; Corp; MSB
||WP 841, 2/12/2020; Fintech
||Financial; Reporting; Risk; Suitability; Technology; Treasury
||Banking; Corporate; Payments
|Reg. Last Update
Last substantive update on 02/13/2020