Sound Practices: implications of fintech developments for banks and bank supervisors

Basel Committee on Banking Supervision

The Basel Committee on Banking Supervision published this report in February, analyzing the implications of the fintech era for banking institutions and supervisors.

It built on research conducted by the committee on the fintech industry, a number of sector papers, as well as the replies to the surveys on activities carried out by member of the committee in the field.

The point of departure is a description of the various fintech developments and scenarios in recent years. First off, it defines the scope of the fintech offering, its main products and services, areas where it has an impact and the size of the industry, comparing it with other periods of innovation and disruption throughout history.

It goes on to focus on the risks and opportunities for banks and supervisors, and finally on the implications for both of using new technology developments.