Innovation in Retail Payments and Its Impact on a Country's Economic Growth and Financial Stability
Presentation in Bank Indonesia Seminar and Workshop 13 November 2017
Olli Rehn: Digital transformation in the financial industry: what's good for ...Suomen Pankki
Olli Rehn
Member of the Board of Bank of Finland
Chair of the Finnish Financial Supervisory Authority (FIN-FSA)
FIN-FSA’s annual seminar on financial services
Helsinki, 22 November 2017
Digital transformation in the financial industry: what’s good for the society?Finanssivalvonta
Olli Rehn, Bank of Finland
FIN-FSA's annual conference on 22 November 2017: Financial Services 2022 – How will financial services develop in the next few years?
Olli Rehn: Digital transformation in the financial industry – potential and ...Suomen Pankki
Olli Rehn
Dr, Member of the Board of Bank of Finland
Digital transformation in the financial industry - potential and challenges
Second Annual Conference on FinTech and Digital Innovation: Regulation at the European Level and Beyond, Brussels, 27 February 2018
China has become a global leader in Fintech, particularly in the mobile payment area. This report describes the market size and key driving factors of China's fintech industry as well as the future of China's fintech ecosystem. It also outlines the related future opportunities and implications for Finland.
Olli Rehn: Digital transformation in the financial industry: what's good for ...Suomen Pankki
Olli Rehn
Member of the Board of Bank of Finland
Chair of the Finnish Financial Supervisory Authority (FIN-FSA)
FIN-FSA’s annual seminar on financial services
Helsinki, 22 November 2017
Digital transformation in the financial industry: what’s good for the society?Finanssivalvonta
Olli Rehn, Bank of Finland
FIN-FSA's annual conference on 22 November 2017: Financial Services 2022 – How will financial services develop in the next few years?
Olli Rehn: Digital transformation in the financial industry – potential and ...Suomen Pankki
Olli Rehn
Dr, Member of the Board of Bank of Finland
Digital transformation in the financial industry - potential and challenges
Second Annual Conference on FinTech and Digital Innovation: Regulation at the European Level and Beyond, Brussels, 27 February 2018
China has become a global leader in Fintech, particularly in the mobile payment area. This report describes the market size and key driving factors of China's fintech industry as well as the future of China's fintech ecosystem. It also outlines the related future opportunities and implications for Finland.
FinTech's innovation in the financial sector means financial technologies that are linked to the spirit of an era. FinTech's aspirations have a mainstream line that can be found on any continent, such as services related to basic banking processes, such as one touch or mobile purchases. At the same time, there are services that are only linked to continents, such as African SMS payment or the Asian micro payment system. In this study, we want to present Asian fintech efforts, such as Taobao, Tmall, Jingdong or Yu'e Bao, with no transaction costs, zero entry barriers, and broad support. The main issue with continental fintech processes is that there is only a demographic reason for different services or more?! It is also a question of building a fintech service from top to bottom (Alibaba) in Asia, or can it be built from bottom to top (Yu’e Bao)?
Internet banking has made banking services accessible anywhere anytime 24/7/365 as a channel by banks to deliver their products and services to esteem customers’ countrywide.
Majority of bank customers in South Sudan did not embrace the latest convenient and accessible internet banking technology service. Traditional branch-based banking remains a widespread method for a banking transaction. However, bank customers are gradually shifting from the traditional branch-based banking system to modern internet banking services.
Fintech in Ukraine 2018 (English language)UNIT.City
Introducing you the first market map of FinTech Industry in Ukraine, powered by USAID Financial Sector Transformation Project and UNIT.City.
Foreign partners, potential investors, banks often ask us about the state of any part finteсh industry of Ukraine.
Today, we present a research that will become a tool for finding partners for Ukrainian and international investors, corporations, R&D centers, journalists, startups and businesses in FinTech.
P.S. If you are creating a fintech business in Ukraine, but did not find your company on the map – write us and we will add it to the next update of this map.
Stockholm FinTech Report 2018 - updated versionMichalGromek
An examination on 248 pages of our Regional Digital FinTech Ecosystem, its investments, trends and review of 3069 LinkedIn profiles - by Stockholm School of Economics launched today at the Fintech Hub. See the link to the full report here https://www.hhs.se/en/about-us/news/2018/report-launch--highly-educated-talent-pool-fuels-fintech-in-stockholm
Governor Erkki Liikanen: Growth potential and public finances need further st...Suomen Pankki
Governor Erkki Liikanen
Bank of Finland
Growth potential and public finances need further strengthening
Bank of Finland press conference, 18 December 2017
The recent wave of financial innovation, particularly innovation related to the application of information and communication technologies, poses a serious challenge to the financial industry’s business model in both its banking and non-banking components. It has already revolutionised financial services and, most likely, will continue to do so in the future. If not responded to adequately and timely by regulators, it may create new risks to financial stability, as occurred before the global financial crisis of 2007-2009. However, financial innovation will not seriously affect the process of monetary policymaking and is unlikely to undermine the ability of central banks to perform their price stability mission. The recent wave of financial innovation, particularly innovation related to the application of information and communication technologies, poses a serious challenge to the financial industry’s business model in both its banking and non-banking components. It has already revolutionised financial services and, most likely, will continue to do so in the future. If not responded to adequately and timely by regulators, it may create new risks to financial stability, as occurred before the global financial crisis of 2007-2009. However, financial innovation will not seriously affect the process of monetary policymaking and is unlikely to undermine the ability of central banks to perform their price stability mission.
Impacts of Information Technology on Banking Industry A Case Study of Akure B...ijtsrd
As information technology is the modern trend on banking today, its very imperative for banks to access its impact operational performance so as to justify if the capital invested on it is Justifiable or not, analyze their problem and profit possible solutions. The objective of this research is to examine how the adoption of information technology affects the operations of commercial banks and the impact of information technology on banks and customer relationship. The main research instruments used are questionnaire from staffs and customers of the bank,156 questionnaire were distributed and 150 questionnaire were administered. The simple frequency percentage was adopted as the statistical measure and hypothesis testing was analyzed using chi square statistical tool, at 0.05 level of significance to show whether they should be upheld or rejected. The results of this research affirmed that there is significant relationship between management disposition and the utilization of information technology by banks in Nigeria. In conclusion, the study reward that information technology has tremendously improved growth and performance of the Nigeria commercial banks. Information technology has lead to increase customer satisfaction, improved operational efficiency, reduced transaction time, and gives the bank a competitive edge. The study recommends that every bank in Nigeria should not only invest heavily on IT especially the point of sales POS , but should distribute same to business outlets where business owners and customers will have access to smooth and hassle free transactions. It is therefore necessary for the government to emphasize the need for more policies that will boost the efficiency in utilization of IT equipment by reducing the cost of acquiring them so as to reduce cost and boost the growth of the economy. Consequently, it is hereby suggested that further studies be carried out on the impact of Information Technology on development finance institutions. Olaitan S. K | Arijeniwa O. C "Impacts of Information Technology on Banking Industry (A Case Study of Akure Bank Area)" Published in International Journal of Trend in Scientific Research and Development (ijtsrd), ISSN: 2456-6470, Volume-5 | Issue-5 , August 2021, URL: https://www.ijtsrd.com/papers/ijtsrd45242.pdf Paper URL: https://www.ijtsrd.com/management/management-development/45242/impacts-of-information-technology-on-banking-industry-a-case-study-of-akure-bank-area/olaitan-s-k
Summary based on Deloitte's CEE Fintech Report 2016
Source: https://www2.deloitte.com/content/dam/Deloitte/global/Documents/About-Deloitte/central-europe/ce-fintech-in-cee-region-2016.pdf
Indian growing new financial establishments, notably banks, square measure one among the most important investors within the domains of knowledge systems, and there square measure quite clear signs that these trends to spread within the future. The arrival and enlargement of globalization and also the development of Advanced technologies knowledge pushed the banks to adopt advanced technology to launch new services. Banks have applied remote enabled service victimization the net to achieve competitive advantage, increase potency, scale back prices and provide a range of latest services. On-line systems create banking transactions straightforward and convenient, notably for disabled people that could need special services. the most purpose of this current study is to look at the most keys to live the advantage perception of victimization net banking technology, as this advanced technology is taken into account together of the principal motivations underlying the inclinations of people to adopt such a convenient technology in India. The model developed associated developed during this analysis study is an extension to the Technology Acceptance Model (TAM). The model was tested with a survey sample of four hundred folks chosen arbitrarily. The findings of the study indicate that everyone mentioned factors within the projected model (CNV, SE, QI, AW, PEU, PU) have important impact at intervals prompting the employment of net banking systems. The information analysis relies on the applied mathematics Package for scientific discipline (SPSS).
The Chinese government has set ambitious goals in its big data industry development to foster new economic drivers. One of these goals is e.g. to increase the annual sales of China’s big data industry (including related goods and services) to RMB 1 trillion by 2020 from an estimated RMB 280 billion in 2015. This report examines the Chinese big data industry and its innovators along with possible future opportunities and implications that China's expanding big data industry could entail for Finland.
Talousosaamisen toimijaverkoston verkostotilaisuus 23.4.2024 rahamuseossa oli varsin antoisa tapahtuma. Tilaisuuden pääaiheena oli vaikuttavuuden arviointi ja mittaaminen. Päivä alkoi Synesis Oy:n Pekka Lavilan esityksellä ihmiskeskeisestä vaikuttavuuslaskennasta. Lisäksi osallistujat saivat kuulla talousosaamisen tutkimuksesta ja OECD:n valmiista mittareista sekä mielenkiintoisista käytännön esimerkeistä mittaamisesta talousosaamisen eri aloilta. Tapahtumassa esiteltiin myös kaksi valtionavustuksen saanutta hanketta. Suuri kiitos kaikille esiintyjille ja osallistujille inspiroivasta päivästä!
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FinTech's innovation in the financial sector means financial technologies that are linked to the spirit of an era. FinTech's aspirations have a mainstream line that can be found on any continent, such as services related to basic banking processes, such as one touch or mobile purchases. At the same time, there are services that are only linked to continents, such as African SMS payment or the Asian micro payment system. In this study, we want to present Asian fintech efforts, such as Taobao, Tmall, Jingdong or Yu'e Bao, with no transaction costs, zero entry barriers, and broad support. The main issue with continental fintech processes is that there is only a demographic reason for different services or more?! It is also a question of building a fintech service from top to bottom (Alibaba) in Asia, or can it be built from bottom to top (Yu’e Bao)?
Internet banking has made banking services accessible anywhere anytime 24/7/365 as a channel by banks to deliver their products and services to esteem customers’ countrywide.
Majority of bank customers in South Sudan did not embrace the latest convenient and accessible internet banking technology service. Traditional branch-based banking remains a widespread method for a banking transaction. However, bank customers are gradually shifting from the traditional branch-based banking system to modern internet banking services.
Fintech in Ukraine 2018 (English language)UNIT.City
Introducing you the first market map of FinTech Industry in Ukraine, powered by USAID Financial Sector Transformation Project and UNIT.City.
Foreign partners, potential investors, banks often ask us about the state of any part finteсh industry of Ukraine.
Today, we present a research that will become a tool for finding partners for Ukrainian and international investors, corporations, R&D centers, journalists, startups and businesses in FinTech.
P.S. If you are creating a fintech business in Ukraine, but did not find your company on the map – write us and we will add it to the next update of this map.
Stockholm FinTech Report 2018 - updated versionMichalGromek
An examination on 248 pages of our Regional Digital FinTech Ecosystem, its investments, trends and review of 3069 LinkedIn profiles - by Stockholm School of Economics launched today at the Fintech Hub. See the link to the full report here https://www.hhs.se/en/about-us/news/2018/report-launch--highly-educated-talent-pool-fuels-fintech-in-stockholm
Governor Erkki Liikanen: Growth potential and public finances need further st...Suomen Pankki
Governor Erkki Liikanen
Bank of Finland
Growth potential and public finances need further strengthening
Bank of Finland press conference, 18 December 2017
The recent wave of financial innovation, particularly innovation related to the application of information and communication technologies, poses a serious challenge to the financial industry’s business model in both its banking and non-banking components. It has already revolutionised financial services and, most likely, will continue to do so in the future. If not responded to adequately and timely by regulators, it may create new risks to financial stability, as occurred before the global financial crisis of 2007-2009. However, financial innovation will not seriously affect the process of monetary policymaking and is unlikely to undermine the ability of central banks to perform their price stability mission. The recent wave of financial innovation, particularly innovation related to the application of information and communication technologies, poses a serious challenge to the financial industry’s business model in both its banking and non-banking components. It has already revolutionised financial services and, most likely, will continue to do so in the future. If not responded to adequately and timely by regulators, it may create new risks to financial stability, as occurred before the global financial crisis of 2007-2009. However, financial innovation will not seriously affect the process of monetary policymaking and is unlikely to undermine the ability of central banks to perform their price stability mission.
Impacts of Information Technology on Banking Industry A Case Study of Akure B...ijtsrd
As information technology is the modern trend on banking today, its very imperative for banks to access its impact operational performance so as to justify if the capital invested on it is Justifiable or not, analyze their problem and profit possible solutions. The objective of this research is to examine how the adoption of information technology affects the operations of commercial banks and the impact of information technology on banks and customer relationship. The main research instruments used are questionnaire from staffs and customers of the bank,156 questionnaire were distributed and 150 questionnaire were administered. The simple frequency percentage was adopted as the statistical measure and hypothesis testing was analyzed using chi square statistical tool, at 0.05 level of significance to show whether they should be upheld or rejected. The results of this research affirmed that there is significant relationship between management disposition and the utilization of information technology by banks in Nigeria. In conclusion, the study reward that information technology has tremendously improved growth and performance of the Nigeria commercial banks. Information technology has lead to increase customer satisfaction, improved operational efficiency, reduced transaction time, and gives the bank a competitive edge. The study recommends that every bank in Nigeria should not only invest heavily on IT especially the point of sales POS , but should distribute same to business outlets where business owners and customers will have access to smooth and hassle free transactions. It is therefore necessary for the government to emphasize the need for more policies that will boost the efficiency in utilization of IT equipment by reducing the cost of acquiring them so as to reduce cost and boost the growth of the economy. Consequently, it is hereby suggested that further studies be carried out on the impact of Information Technology on development finance institutions. Olaitan S. K | Arijeniwa O. C "Impacts of Information Technology on Banking Industry (A Case Study of Akure Bank Area)" Published in International Journal of Trend in Scientific Research and Development (ijtsrd), ISSN: 2456-6470, Volume-5 | Issue-5 , August 2021, URL: https://www.ijtsrd.com/papers/ijtsrd45242.pdf Paper URL: https://www.ijtsrd.com/management/management-development/45242/impacts-of-information-technology-on-banking-industry-a-case-study-of-akure-bank-area/olaitan-s-k
Summary based on Deloitte's CEE Fintech Report 2016
Source: https://www2.deloitte.com/content/dam/Deloitte/global/Documents/About-Deloitte/central-europe/ce-fintech-in-cee-region-2016.pdf
Indian growing new financial establishments, notably banks, square measure one among the most important investors within the domains of knowledge systems, and there square measure quite clear signs that these trends to spread within the future. The arrival and enlargement of globalization and also the development of Advanced technologies knowledge pushed the banks to adopt advanced technology to launch new services. Banks have applied remote enabled service victimization the net to achieve competitive advantage, increase potency, scale back prices and provide a range of latest services. On-line systems create banking transactions straightforward and convenient, notably for disabled people that could need special services. the most purpose of this current study is to look at the most keys to live the advantage perception of victimization net banking technology, as this advanced technology is taken into account together of the principal motivations underlying the inclinations of people to adopt such a convenient technology in India. The model developed associated developed during this analysis study is an extension to the Technology Acceptance Model (TAM). The model was tested with a survey sample of four hundred folks chosen arbitrarily. The findings of the study indicate that everyone mentioned factors within the projected model (CNV, SE, QI, AW, PEU, PU) have important impact at intervals prompting the employment of net banking systems. The information analysis relies on the applied mathematics Package for scientific discipline (SPSS).
The Chinese government has set ambitious goals in its big data industry development to foster new economic drivers. One of these goals is e.g. to increase the annual sales of China’s big data industry (including related goods and services) to RMB 1 trillion by 2020 from an estimated RMB 280 billion in 2015. This report examines the Chinese big data industry and its innovators along with possible future opportunities and implications that China's expanding big data industry could entail for Finland.
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Talousosaamisen toimijaverkoston verkostotilaisuus 23.4.2024 rahamuseossa oli varsin antoisa tapahtuma. Tilaisuuden pääaiheena oli vaikuttavuuden arviointi ja mittaaminen. Päivä alkoi Synesis Oy:n Pekka Lavilan esityksellä ihmiskeskeisestä vaikuttavuuslaskennasta. Lisäksi osallistujat saivat kuulla talousosaamisen tutkimuksesta ja OECD:n valmiista mittareista sekä mielenkiintoisista käytännön esimerkeistä mittaamisesta talousosaamisen eri aloilta. Tapahtumassa esiteltiin myös kaksi valtionavustuksen saanutta hanketta. Suuri kiitos kaikille esiintyjille ja osallistujille inspiroivasta päivästä!
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Talousosaamisen toimijaverkostolle suunnattu ”Tutkimuksesta käytäntöön:
Kansainvälisiä tutkimustuloksia talousosaamisesta ja käyttäytymistieteellinen työpaja”
verkostotilaisuus järjestettiin 15.1.2024 Tiedekeskus Heurekassa.
Verkostotilaisuuteen osallistui lähes 80 talousosaamisen toimijaverkoston edustajaa. Koko päivän kestävään tilaisuuteen sisältyi aktiivista keskustelua ja yhteistä työpajatyöskentelyä. Professori Panu Kalmi Vaasan yliopistosta, tutkimusjohtaja Olli-Pekka Ruuskanen ja ekonomisti Saara Vaahtoniemi PTT:sta esittelivät talousosaamisen tuoreita kansainvälisiä tutkimustuloksia, joita kommentoivat toimitusjohtaja Juha A. Pantzar Takuusäätiöstä ja yhteiskuntavastuujohtaja Pirjo K. Kuusela Nordeasta. Oikeusministeriö teetti suomalaisten talousosaamisesta tutkimuksen OECD:n talousopetuksen verkoston (International Network on Financial Education, INFE) luoman mallin mukaan. Tutkimus tukee talousosaamisen kansallisen strategian toteuttamista.
Tilaisuudessa talousosaamisen strategian ajankohtaisista asioista kertoivat johtava asiantuntija Sanna Helesuo ja erityisasiantuntija Mette Ranta oikeusministeriöstä sekä talousosaamisen neuvonantaja Anu Raijas Suomen Pankista. Näyttelypäällikkö Vesa Lepistö Heurekasta kertoi uudesta talousnäyttelyhankkeesta.
Tilaisuuden työpajaosuudessa pohdittiin talousosaamisen kansainvälisten tutkimustulosten ja käyttäytymistiedon merkitystä käytännön työn näkökulmasta. Sovelsimme pienryhmissä käyttäytymistietoon pohjautuvaa työskentelymenetelmää, jonka avulla voidaan vahvistaa talousosaamisen hankkeiden suunnittelua ja vaikuttavuutta. Työpajan veti erityisasiantuntija Maarit Lassander tiimeineen.
Talousosaamisen toimijaverkostolle suunnattu ”Tutkimuksesta käytäntöön:
Kansainvälisiä tutkimustuloksia talousosaamisesta ja käyttäytymistieteellinen työpaja”
verkostotilaisuus järjestettiin 15.1.2024 Tiedekeskus Heurekassa.
Verkostotilaisuuteen osallistui lähes 80 talousosaamisen toimijaverkoston edustajaa. Koko päivän kestävään tilaisuuteen sisältyi aktiivista keskustelua ja yhteistä työpajatyöskentelyä. Professori Panu Kalmi Vaasan yliopistosta, tutkimusjohtaja Olli-Pekka Ruuskanen ja ekonomisti Saara Vaahtoniemi PTT:sta esittelivät talousosaamisen tuoreita kansainvälisiä tutkimustuloksia, joita kommentoivat toimitusjohtaja Juha A. Pantzar Takuusäätiöstä ja yhteiskuntavastuujohtaja Pirjo K. Kuusela Nordeasta. Oikeusministeriö teetti suomalaisten talousosaamisesta tutkimuksen OECD:n talousopetuksen verkoston (International Network on Financial Education, INFE) luoman mallin mukaan. Tutkimus tukee talousosaamisen kansallisen strategian toteuttamista.
Tilaisuudessa talousosaamisen strategian ajankohtaisista asioista kertoivat johtava asiantuntija Sanna Helesuo ja erityisasiantuntija Mette Ranta oikeusministeriöstä sekä talousosaamisen neuvonantaja Anu Raijas Suomen Pankista. Näyttelypäällikkö Vesa Lepistö Heurekasta kertoi uudesta talousnäyttelyhankkeesta.
Tilaisuuden työpajaosuudessa pohdittiin talousosaamisen kansainvälisten tutkimustulosten ja käyttäytymistiedon merkitystä käytännön työn näkökulmasta. Sovelsimme pienryhmissä käyttäytymistietoon pohjautuvaa työskentelymenetelmää, jonka avulla voidaan vahvistaa talousosaamisen hankkeiden suunnittelua ja vaikuttavuutta. Työpajan veti erityisasiantuntija Maarit Lassander tiimeineen.
Talousosaamisen toimijaverkostolle suunnattu ”Tutkimuksesta käytäntöön:
Kansainvälisiä tutkimustuloksia talousosaamisesta ja käyttäytymistieteellinen työpaja”
verkostotilaisuus järjestettiin 15.1.2024 Tiedekeskus Heurekassa.
Verkostotilaisuuteen osallistui lähes 80 talousosaamisen toimijaverkoston edustajaa. Koko päivän kestävään tilaisuuteen sisältyi aktiivista keskustelua ja yhteistä työpajatyöskentelyä. Professori Panu Kalmi Vaasan yliopistosta, tutkimusjohtaja Olli-Pekka Ruuskanen ja ekonomisti Saara Vaahtoniemi PTT:sta esittelivät talousosaamisen tuoreita kansainvälisiä tutkimustuloksia, joita kommentoivat toimitusjohtaja Juha A. Pantzar Takuusäätiöstä ja yhteiskuntavastuujohtaja Pirjo K. Kuusela Nordeasta. Oikeusministeriö teetti suomalaisten talousosaamisesta tutkimuksen OECD:n talousopetuksen verkoston (International Network on Financial Education, INFE) luoman mallin mukaan. Tutkimus tukee talousosaamisen kansallisen strategian toteuttamista.
Tilaisuudessa talousosaamisen strategian ajankohtaisista asioista kertoivat johtava asiantuntija Sanna Helesuo ja erityisasiantuntija Mette Ranta oikeusministeriöstä sekä talousosaamisen neuvonantaja Anu Raijas Suomen Pankista. Näyttelypäällikkö Vesa Lepistö Heurekasta kertoi uudesta talousnäyttelyhankkeesta.
Tilaisuuden työpajaosuudessa pohdittiin talousosaamisen kansainvälisten tutkimustulosten ja käyttäytymistiedon merkitystä käytännön työn näkökulmasta. Sovelsimme pienryhmissä käyttäytymistietoon pohjautuvaa työskentelymenetelmää, jonka avulla voidaan vahvistaa talousosaamisen hankkeiden suunnittelua ja vaikuttavuutta. Työpajan veti erityisasiantuntija Maarit Lassander tiimeineen.
Talousosaamisen toimijaverkostolle suunnattu ”Tutkimuksesta käytäntöön:
Kansainvälisiä tutkimustuloksia talousosaamisesta ja käyttäytymistieteellinen työpaja”
verkostotilaisuus järjestettiin 15.1.2024 Tiedekeskus Heurekassa.
Verkostotilaisuuteen osallistui lähes 80 talousosaamisen toimijaverkoston edustajaa. Koko päivän kestävään tilaisuuteen sisältyi aktiivista keskustelua ja yhteistä työpajatyöskentelyä. Professori Panu Kalmi Vaasan yliopistosta, tutkimusjohtaja Olli-Pekka Ruuskanen ja ekonomisti Saara Vaahtoniemi PTT:sta esittelivät talousosaamisen tuoreita kansainvälisiä tutkimustuloksia, joita kommentoivat toimitusjohtaja Juha A. Pantzar Takuusäätiöstä ja yhteiskuntavastuujohtaja Pirjo K. Kuusela Nordeasta. Oikeusministeriö teetti suomalaisten talousosaamisesta tutkimuksen OECD:n talousopetuksen verkoston (International Network on Financial Education, INFE) luoman mallin mukaan. Tutkimus tukee talousosaamisen kansallisen strategian toteuttamista.
Tilaisuudessa talousosaamisen strategian ajankohtaisista asioista kertoivat johtava asiantuntija Sanna Helesuo ja erityisasiantuntija Mette Ranta oikeusministeriöstä sekä talousosaamisen neuvonantaja Anu Raijas Suomen Pankista. Näyttelypäällikkö Vesa Lepistö Heurekasta kertoi uudesta talousnäyttelyhankkeesta.
Tilaisuuden työpajaosuudessa pohdittiin talousosaamisen kansainvälisten tutkimustulosten ja käyttäytymistiedon merkitystä käytännön työn näkökulmasta. Sovelsimme pienryhmissä käyttäytymistietoon pohjautuvaa työskentelymenetelmää, jonka avulla voidaan vahvistaa talousosaamisen hankkeiden suunnittelua ja vaikuttavuutta. Työpajan veti erityisasiantuntija Maarit Lassander tiimeineen.
Talousosaamisen toimijaverkostolle suunnattu ”Tutkimuksesta käytäntöön:
Kansainvälisiä tutkimustuloksia talousosaamisesta ja käyttäytymistieteellinen työpaja”
verkostotilaisuus järjestettiin 15.1.2024 Tiedekeskus Heurekassa.
Verkostotilaisuuteen osallistui lähes 80 talousosaamisen toimijaverkoston edustajaa. Koko päivän kestävään tilaisuuteen sisältyi aktiivista keskustelua ja yhteistä työpajatyöskentelyä. Professori Panu Kalmi Vaasan yliopistosta, tutkimusjohtaja Olli-Pekka Ruuskanen ja ekonomisti Saara Vaahtoniemi PTT:sta esittelivät talousosaamisen tuoreita kansainvälisiä tutkimustuloksia, joita kommentoivat toimitusjohtaja Juha A. Pantzar Takuusäätiöstä ja yhteiskuntavastuujohtaja Pirjo K. Kuusela Nordeasta. Oikeusministeriö teetti suomalaisten talousosaamisesta tutkimuksen OECD:n talousopetuksen verkoston (International Network on Financial Education, INFE) luoman mallin mukaan. Tutkimus tukee talousosaamisen kansallisen strategian toteuttamista.
Tilaisuudessa talousosaamisen strategian ajankohtaisista asioista kertoivat johtava asiantuntija Sanna Helesuo ja erityisasiantuntija Mette Ranta oikeusministeriöstä sekä talousosaamisen neuvonantaja Anu Raijas Suomen Pankista. Näyttelypäällikkö Vesa Lepistö Heurekasta kertoi uudesta talousnäyttelyhankkeesta.
Tilaisuuden työpajaosuudessa pohdittiin talousosaamisen kansainvälisten tutkimustulosten ja käyttäytymistiedon merkitystä käytännön työn näkökulmasta. Sovelsimme pienryhmissä käyttäytymistietoon pohjautuvaa työskentelymenetelmää, jonka avulla voidaan vahvistaa talousosaamisen hankkeiden suunnittelua ja vaikuttavuutta. Työpajan veti erityisasiantuntija Maarit Lassander tiimeineen.
Talousosaamisen toimijaverkostolle suunnattu ”Tutkimuksesta käytäntöön:
Kansainvälisiä tutkimustuloksia talousosaamisesta ja käyttäytymistieteellinen työpaja”
verkostotilaisuus järjestettiin 15.1.2024 Tiedekeskus Heurekassa.
Verkostotilaisuuteen osallistui lähes 80 talousosaamisen toimijaverkoston edustajaa. Koko päivän kestävään tilaisuuteen sisältyi aktiivista keskustelua ja yhteistä työpajatyöskentelyä. Professori Panu Kalmi Vaasan yliopistosta, tutkimusjohtaja Olli-Pekka Ruuskanen ja ekonomisti Saara Vaahtoniemi PTT:sta esittelivät talousosaamisen tuoreita kansainvälisiä tutkimustuloksia, joita kommentoivat toimitusjohtaja Juha A. Pantzar Takuusäätiöstä ja yhteiskuntavastuujohtaja Pirjo K. Kuusela Nordeasta. Oikeusministeriö teetti suomalaisten talousosaamisesta tutkimuksen OECD:n talousopetuksen verkoston (International Network on Financial Education, INFE) luoman mallin mukaan. Tutkimus tukee talousosaamisen kansallisen strategian toteuttamista.
Tilaisuudessa talousosaamisen strategian ajankohtaisista asioista kertoivat johtava asiantuntija Sanna Helesuo ja erityisasiantuntija Mette Ranta oikeusministeriöstä sekä talousosaamisen neuvonantaja Anu Raijas Suomen Pankista. Näyttelypäällikkö Vesa Lepistö Heurekasta kertoi uudesta talousnäyttelyhankkeesta.
Tilaisuuden työpajaosuudessa pohdittiin talousosaamisen kansainvälisten tutkimustulosten ja käyttäytymistiedon merkitystä käytännön työn näkökulmasta. Sovelsimme pienryhmissä käyttäytymistietoon pohjautuvaa työskentelymenetelmää, jonka avulla voidaan vahvistaa talousosaamisen hankkeiden suunnittelua ja vaikuttavuutta. Työpajan veti erityisasiantuntija Maarit Lassander tiimeineen.
Talousosaamisen toimijaverkostolle suunnattu ”Tutkimuksesta käytäntöön:
Kansainvälisiä tutkimustuloksia talousosaamisesta ja käyttäytymistieteellinen työpaja”
verkostotilaisuus järjestettiin 15.1.2024 Tiedekeskus Heurekassa.
Verkostotilaisuuteen osallistui lähes 80 talousosaamisen toimijaverkoston edustajaa. Koko päivän kestävään tilaisuuteen sisältyi aktiivista keskustelua ja yhteistä työpajatyöskentelyä. Professori Panu Kalmi Vaasan yliopistosta, tutkimusjohtaja Olli-Pekka Ruuskanen ja ekonomisti Saara Vaahtoniemi PTT:sta esittelivät talousosaamisen tuoreita kansainvälisiä tutkimustuloksia, joita kommentoivat toimitusjohtaja Juha A. Pantzar Takuusäätiöstä ja yhteiskuntavastuujohtaja Pirjo K. Kuusela Nordeasta. Oikeusministeriö teetti suomalaisten talousosaamisesta tutkimuksen OECD:n talousopetuksen verkoston (International Network on Financial Education, INFE) luoman mallin mukaan. Tutkimus tukee talousosaamisen kansallisen strategian toteuttamista.
Tilaisuudessa talousosaamisen strategian ajankohtaisista asioista kertoivat johtava asiantuntija Sanna Helesuo ja erityisasiantuntija Mette Ranta oikeusministeriöstä sekä talousosaamisen neuvonantaja Anu Raijas Suomen Pankista. Näyttelypäällikkö Vesa Lepistö Heurekasta kertoi uudesta talousnäyttelyhankkeesta.
Tilaisuuden työpajaosuudessa pohdittiin talousosaamisen kansainvälisten tutkimustulosten ja käyttäytymistiedon merkitystä käytännön työn näkökulmasta. Sovelsimme pienryhmissä käyttäytymistietoon pohjautuvaa työskentelymenetelmää, jonka avulla voidaan vahvistaa talousosaamisen hankkeiden suunnittelua ja vaikuttavuutta. Työpajan veti erityisasiantuntija Maarit Lassander tiimeineen.
Talousosaamisen toimijaverkostolle suunnattu ”Tutkimuksesta käytäntöön:
Kansainvälisiä tutkimustuloksia talousosaamisesta ja käyttäytymistieteellinen työpaja”
verkostotilaisuus järjestettiin 15.1.2024 Tiedekeskus Heurekassa.
Verkostotilaisuuteen osallistui lähes 80 talousosaamisen toimijaverkoston edustajaa. Koko päivän kestävään tilaisuuteen sisältyi aktiivista keskustelua ja yhteistä työpajatyöskentelyä. Professori Panu Kalmi Vaasan yliopistosta, tutkimusjohtaja Olli-Pekka Ruuskanen ja ekonomisti Saara Vaahtoniemi PTT:sta esittelivät talousosaamisen tuoreita kansainvälisiä tutkimustuloksia, joita kommentoivat toimitusjohtaja Juha A. Pantzar Takuusäätiöstä ja yhteiskuntavastuujohtaja Pirjo K. Kuusela Nordeasta. Oikeusministeriö teetti suomalaisten talousosaamisesta tutkimuksen OECD:n talousopetuksen verkoston (International Network on Financial Education, INFE) luoman mallin mukaan. Tutkimus tukee talousosaamisen kansallisen strategian toteuttamista.
Tilaisuudessa talousosaamisen strategian ajankohtaisista asioista kertoivat johtava asiantuntija Sanna Helesuo ja erityisasiantuntija Mette Ranta oikeusministeriöstä sekä talousosaamisen neuvonantaja Anu Raijas Suomen Pankista. Näyttelypäällikkö Vesa Lepistö Heurekasta kertoi uudesta talousnäyttelyhankkeesta.
Tilaisuuden työpajaosuudessa pohdittiin talousosaamisen kansainvälisten tutkimustulosten ja käyttäytymistiedon merkitystä käytännön työn näkökulmasta. Sovelsimme pienryhmissä käyttäytymistietoon pohjautuvaa työskentelymenetelmää, jonka avulla voidaan vahvistaa talousosaamisen hankkeiden suunnittelua ja vaikuttavuutta. Työpajan veti erityisasiantuntija Maarit Lassander tiimeineen.
Talousosaamisen toimijaverkostolle suunnattu ”Tutkimuksesta käytäntöön:
Kansainvälisiä tutkimustuloksia talousosaamisesta ja käyttäytymistieteellinen työpaja”
verkostotilaisuus järjestettiin 15.1.2024 Tiedekeskus Heurekassa.
Verkostotilaisuuteen osallistui lähes 80 talousosaamisen toimijaverkoston edustajaa. Koko päivän kestävään tilaisuuteen sisältyi aktiivista keskustelua ja yhteistä työpajatyöskentelyä. Professori Panu Kalmi Vaasan yliopistosta, tutkimusjohtaja Olli-Pekka Ruuskanen ja ekonomisti Saara Vaahtoniemi PTT:sta esittelivät talousosaamisen tuoreita kansainvälisiä tutkimustuloksia, joita kommentoivat toimitusjohtaja Juha A. Pantzar Takuusäätiöstä ja yhteiskuntavastuujohtaja Pirjo K. Kuusela Nordeasta. Oikeusministeriö teetti suomalaisten talousosaamisesta tutkimuksen OECD:n talousopetuksen verkoston (International Network on Financial Education, INFE) luoman mallin mukaan. Tutkimus tukee talousosaamisen kansallisen strategian toteuttamista.
Tilaisuudessa talousosaamisen strategian ajankohtaisista asioista kertoivat johtava asiantuntija Sanna Helesuo ja erityisasiantuntija Mette Ranta oikeusministeriöstä sekä talousosaamisen neuvonantaja Anu Raijas Suomen Pankista. Näyttelypäällikkö Vesa Lepistö Heurekasta kertoi uudesta talousnäyttelyhankkeesta.
Tilaisuuden työpajaosuudessa pohdittiin talousosaamisen kansainvälisten tutkimustulosten ja käyttäytymistiedon merkitystä käytännön työn näkökulmasta. Sovelsimme pienryhmissä käyttäytymistietoon pohjautuvaa työskentelymenetelmää, jonka avulla voidaan vahvistaa talousosaamisen hankkeiden suunnittelua ja vaikuttavuutta. Työpajan veti erityisasiantuntija Maarit Lassander tiimeineen.
A process server is a authorized person for delivering legal documents, such as summons, complaints, subpoenas, and other court papers, to peoples involved in legal proceedings.
Many ways to support street children.pptxSERUDS INDIA
By raising awareness, providing support, advocating for change, and offering assistance to children in need, individuals can play a crucial role in improving the lives of street children and helping them realize their full potential
Donate Us
https://serudsindia.org/how-individuals-can-support-street-children-in-india/
#donatefororphan, #donateforhomelesschildren, #childeducation, #ngochildeducation, #donateforeducation, #donationforchildeducation, #sponsorforpoorchild, #sponsororphanage #sponsororphanchild, #donation, #education, #charity, #educationforchild, #seruds, #kurnool, #joyhome
ZGB - The Role of Generative AI in Government transformation.pdfSaeed Al Dhaheri
This keynote was presented during the the 7th edition of the UAE Hackathon 2024. It highlights the role of AI and Generative AI in addressing government transformation to achieve zero government bureaucracy
Russian anarchist and anti-war movement in the third year of full-scale warAntti Rautiainen
Anarchist group ANA Regensburg hosted my online-presentation on 16th of May 2024, in which I discussed tactics of anti-war activism in Russia, and reasons why the anti-war movement has not been able to make an impact to change the course of events yet. Cases of anarchists repressed for anti-war activities are presented, as well as strategies of support for political prisoners, and modest successes in supporting their struggles.
Thumbnail picture is by MediaZona, you may read their report on anti-war arson attacks in Russia here: https://en.zona.media/article/2022/10/13/burn-map
Links:
Autonomous Action
http://Avtonom.org
Anarchist Black Cross Moscow
http://Avtonom.org/abc
Solidarity Zone
https://t.me/solidarity_zone
Memorial
https://memopzk.org/, https://t.me/pzk_memorial
OVD-Info
https://en.ovdinfo.org/antiwar-ovd-info-guide
RosUznik
https://rosuznik.org/
Uznik Online
http://uznikonline.tilda.ws/
Russian Reader
https://therussianreader.com/
ABC Irkutsk
https://abc38.noblogs.org/
Send mail to prisoners from abroad:
http://Prisonmail.online
YouTube: https://youtu.be/c5nSOdU48O8
Spotify: https://podcasters.spotify.com/pod/show/libertarianlifecoach/episodes/Russian-anarchist-and-anti-war-movement-in-the-third-year-of-full-scale-war-e2k8ai4
Jennifer Schaus and Associates hosts a complimentary webinar series on The FAR in 2024. Join the webinars on Wednesdays and Fridays at noon, eastern.
Recordings are on YouTube and the company website.
https://www.youtube.com/@jenniferschaus/videos
2024: The FAR - Federal Acquisition Regulations, Part 37
Deputy Governor Seppo Honkapohja: Innovation in Retail Payments and Its Impact on a Country's Economic Growth and Financial Stability
1. Unrestricted
Bank of Finland
Innovation in Retail Payments
and Its Impact on a Country's
Economic Growth and
Financial Stability
Presentation in Bank Indonesia Seminar and
Workshop 13 November 2017
113.11.2017
Seppo Honkapohja
2. Suomen Pankki – Finlands Bank – Bank of Finland Unrestricted
Agenda
1. Effects of innovation at the level of whole economy
The big picture: Digitalisation, technological change, productivity, and well-being in the
long run
Optimists and pessimists: how will digitalisation impact the economy and society as a
whole
Widening use of digital technology and new opportunities
2. Effects of innovation in financial markets
The financial system and economic performance
Payment systems and economic well-being
Innovations in financial services and financial stability
3. Evolution of payment systems
Main drivers and trends: consumer expectations, fragmentation of the markets, real-time
payments, “embedded payments”
Assessing the change: European situation (PSD2, PAD)
4. Conclusions and policy considerations
Key areas and challenges for policy makers
13.11.2017 Seppo Honkapohja 2
3. Suomen Pankki – Finlands Bank – Bank of Finland Unrestricted
1. Effects of innovation at the
level of whole economy
1.1 Long-term trends
13.11.2017 Seppo Honkapohja 3
4. Suomen Pankki – Finlands Bank – Bank of Finland Unrestricted13.11.2017 Seppo Honkapohja 4
Why has our standard of living improved
so much over last 150 year?
5. Suomen Pankki – Finlands Bank – Bank of Finland Unrestricted13.11.2017 Seppo Honkapohja 5
6. Suomen Pankki – Finlands Bank – Bank of Finland Unrestricted
The rise in the standard of living 1860−2010
13.11.2017 Seppo Honkapohja 6
7. Suomen Pankki – Finlands Bank – Bank of Finland Unrestricted
Labour productivity growth and improvement
of living standard in Finland in 1860−2015
13.11.2017 Seppo Honkapohja 7
8. Suomen Pankki – Finlands Bank – Bank of Finland Unrestricted
Technological development evident as
waves of productivity growth
13.11.2017 Seppo Honkapohja 8
9. Suomen Pankki – Finlands Bank – Bank of Finland Unrestricted
1.2 Debate about digitalization
13.11.2017 Seppo Honkapohja 9
10. Suomen Pankki – Finlands Bank – Bank of Finland Unrestricted
What is digitalization?
Digitization:
To convert, store, transfer, and
process information in a
format understood by computers
– Binary data
– Digital information can be music, movies,
documents, maps, observational data etc.
Digitalization:
Widespread economic and social transformation made
possible by the development of information and
communication technology
– A change that is visible in all sectors of the economy
– Automation, robotization, digital platforms, artificial intelligence,
industrial internet, internet of things, digital government etc.
13.11.2017 Seppo Honkapohja
”Suomen Pankki”
=
01010011 01110101 01101111
01101101 01100101 01101110
00100000 01010000 01100001
01101110 01101011 01101011
01101001
10
11. Suomen Pankki – Finlands Bank – Bank of Finland Unrestricted
Will digitalization cause a new wave of
productivity growth which matches the
previous technological revolutions?
Pessimists
Computers are seen everywhere
except productivity statistics
(Robert Solow)
Development has been limited to
entertainment and communication
(Robert Gordon)
The low-hanging fruits have already
been picked (Tyler Cowen)
We’ve been waiting for accelerated
growth for a long time now
Economic headwinds will dampen
growth despite technological
progress (Robert Gordon)
Optimists
We ain’t seen nothin’ yet (Joel Mokyr)
The second machine age
(Erik Brynjolfsson & Andrew McAfee)
We tend to overestimate the effect of a
technology in the short run and
underestimate the effect in the long run
(Ray Amara)
The same pessimist arguments were
made before the previous technological
revolutions
The statistics do not tell all
The rate of new innovations has not
slowed down
13.11.2017 Seppo Honkapohja 11
12. Suomen Pankki – Finlands Bank – Bank of Finland Unrestricted
Prices of ICT equipment and services
have fallen exponentially
13.11.2017 Seppo Honkapohja 12
13. Suomen Pankki – Finlands Bank – Bank of Finland Unrestricted
Prevalence of ICT equipment and
connections in households
13.11.2017 Seppo Honkapohja 13
14. Suomen Pankki – Finlands Bank – Bank of Finland Unrestricted
Mobile data transfer volume
in Finland, 2007−2016
13.11.2017 Seppo Honkapohja 14
Currently almost 10 times
more data is transferred
in one day than in the
year 2007 as a whole
15. Suomen Pankki – Finlands Bank – Bank of Finland Unrestricted
Technological development, economic
growth and the road ahead
1. Productivity growth derived from technological
development is the main driver of improving living
standards in the long run.
2. The future impact of digitalization on economic
growth is uncertain, but signs of its potential are
already clearly visible.
3. Digitalisation is bound to transform industries based
information processing and communication −
such as finance and payments.
13.11.2017 Seppo Honkapohja 15
16. Suomen Pankki – Finlands Bank – Bank of Finland Unrestricted
2. Effects of innovation in
financial markets
2.1 Financial systems and economic
performance
13.11.2017 Seppo Honkapohja 16
17. Suomen Pankki – Finlands Bank – Bank of Finland Unrestricted
Financial systems and economic
performance
Source: Hartmann et al. (2007) “The role of financial markets and innovation in productivity and growth in Europe“
13.11.2017 Seppo Honkapohja
18. Suomen Pankki – Finlands Bank – Bank of Finland Unrestricted
Impact of finance on economic
growth (1)
Question: Can there be too much finance?
Source: Cournède, B. and O. Denk (2015), “Finance and economic growth in OECD and G20
countries”, OECD Economics Department Working Papers, No. 1223, OECD Publishing,
Paris.
13.11.2017 Seppo Honkapohja 18
19. Suomen Pankki – Finlands Bank – Bank of Finland Unrestricted
Impact of finance on economic
growth (2)
Other views also exist:
For example, Durusu-Ciftci, Ispir & Yetkiner (2017)
find that by fostering the development of a country’s
financial sector, economic growth will be accelerated.
Journal of Policy Modelling, Vol. 39, Issue 2.
(http://www.sciencedirect.com/science/article/pii/S0161893816300631)
For financial innovation both “bright and dark sides”
exist:
For a recent review on innovation-growth view and
innovation-fragility view, see e.g. Beck, Chen, Lin &
Song (2016) “The bright and the dark sides”
Journal of Banking and Finance, Volume 72, November 2016
(http://www.sciencedirect.com/science/article/pii/S0378426616301133)
13.11.2017 Seppo Honkapohja 19
20. Suomen Pankki – Finlands Bank – Bank of Finland Unrestricted
2.2 Payment systems and economic
well-being
13.11.2017 Seppo Honkapohja 20
21. Suomen Pankki – Finlands Bank – Bank of Finland Unrestricted
On the relationship between retail payments
development and economic performance
13.11.2017 Seppo Honkapohja 21
Source: “Efficient retail payments: An untapped source for reviving growth in Europe?”, Iftekhar Hasan & Tuomas Takalo,
VoxEU, 24 January 2014
22. Suomen Pankki – Finlands Bank – Bank of Finland Unrestricted
Some studies on payment systems and
economic growth
DeRenzis et al (2012 & 2013):
– Electronic payment instruments have overall a positive impact on
economic development
Tee and Ong (2016):
– The impact of adopting cashless payment on economic growth
can only be significantly observed in the long run
Zandi et al. (2017):
– Increasing use of electronic payments boosts consumption and
GDP, and the impact increases as penetration rises. Effect on the
global level is 0,1% of GDP.
Ilyes & Varga (2016):
– Utilise a DSGE model to study impacts on the performance of the
Hungarian economy if retail cash payments were substituted with
card payments. Results show both positive indirect and direct
effects.
13.11.2017 Seppo Honkapohja 22
23. Suomen Pankki – Finlands Bank – Bank of Finland Unrestricted
References of the studies mentioned
Hasan, De Renziz and Schmiedel (2012), BOF DP
19 2012 and ECB WP No. 1572, 2013.
Tee and Ong (2016), Cashless payments and
economic growth, Financial Innovation (2016) 2:4.
Zandi, Koropeckyj, Singh and Matsiras (2017), The
Impact of electronic payments on economic growth,
Moody’s Analytics (2017).
(https://usa.visa.com/dam/VCOM/download/visa-
everywhere/global-impact/impact-of-electronic-
payments-on-economic-growth.pdf)
Ilyes & Varga (2016) Macroeconomic effects of the
increase in electronic payments – a general
equilibrium approach using Hungarian data, Financial
and Economic Review, June 2016
13.11.2017 Seppo Honkapohja 23
24. Suomen Pankki – Finlands Bank – Bank of Finland Unrestricted
2.3 Innovations in financial services
and financial stability
13.11.2017 Seppo Honkapohja 24
25. Suomen Pankki – Finlands Bank – Bank of Finland Unrestricted
Financial services and Fintech
Use of advanced technologies by financial services
firms is not a new phenomenon:
– Internal technological solutions to service provision and to compliance
with regulatory obligations.
– Also outsourcing with external service providers has existed for long
time.
But the rise of FinTech is a recent phenomenon.
– Definition of FinTech: Technology-enabled innovation in financial
services that could result in new business models, applications,
processes etc.
It has led to
– Increased technological, especially IT, investments
– Appearance of a whole array of different firms:
Incumbents
specialized start-ups and
global telecom/technology companies (“GAFAA”: Google, Apple,
Facebook, Amazon and Alibaba”).
13.11.2017 Seppo Honkapohja 25
26. Suomen Pankki – Finlands Bank – Bank of Finland Unrestricted
FinTech: Opportunities and challenges
for central banks and regulators
Opportunities:
Financial inclusion; more people gain access to
financial services.
More competition; leads to lower prices and better
services.
More efficient processes and financial intermediation.
Challenges:
Financial stability
Banking supervision
Payment systems
Transmission of monetary policy
13.11.2017 Seppo Honkapohja 26
27. Suomen Pankki – Finlands Bank – Bank of Finland Unrestricted
Overview about regulation of FinTech
activities in Europe
Public authorities in the EU are investigating the
impact of FinTech.
– Impact of FinTech on the financial system and
– on its the regulation and supervision thereof.
Recent European Banking Authority (EBA) survey of
financial services, innovations by FinTech firms and
their regulation.
– See next slide
Significant percentage of services provision is not
regulated.
– Regulation practices are likely to vary from country to country.
However, stability problems with FinTech have not
risen thus far.
– Rapid growth of FinTech => Important to remain alert
13.11.2017 Seppo Honkapohja 27
28. Suomen Pankki – Finlands Bank – Bank of Finland Unrestricted
European Fintech activity
13.11.2017 Seppo Honkapohja 28
Source: EBA (https://www.eba.europa.eu/-/eba-publishes-a-discussion-paper-on-its-approach-to-fintech)
29. Suomen Pankki – Finlands Bank – Bank of Finland Unrestricted
3. Evolution of payment
systems
3.1 General features
13.11.2017 Seppo Honkapohja 29
30. Suomen Pankki – Finlands Bank – Bank of Finland Unrestricted
Payments play an important role in
innovations in financial services
13.11.2017 Seppo Honkapohja 30
31. Suomen Pankki – Finlands Bank – Bank of Finland Unrestricted
Main driver in retail payment
developments: consumer expectations
In payments, there is a movement towards a 24/7
world.
Consumers expect instantaneous transactions as
well as easy and handy payment applications.
These are not isolated trends but a paradigm shift
in consumer behavior.
Consumers compare financial services to other
services and expect the same usability and customer
experience.
13.11.2017 Seppo Honkapohja 31
32. Suomen Pankki – Finlands Bank – Bank of Finland Unrestricted
An example of one major driving force:
mobile device penetration
13.11.2017 Seppo Honkapohja 32
Mobile devices play a growing role in the supply of
financial services
Source: World Bank
33. Suomen Pankki – Finlands Bank – Bank of Finland Unrestricted
Three trends in payment markets
1. Payment landscape has become fragmented.
2. Payments are becoming instant / real-time.
3. Payments are becoming embedded into the service.
13.11.2017 Seppo Honkapohja 33
34. Suomen Pankki – Finlands Bank – Bank of Finland Unrestricted
Trend (1): Payment landscape has
become fragmented
Several new payment applications
Several new actors in the customer interface
Open interfaces enable ecosystems to evolve
13.11.2017 Seppo Honkapohja 34
Source: Edgar, Dunn & Company
35. Suomen Pankki – Finlands Bank – Bank of Finland Unrestricted
Trend (2): Payments are becoming
instant / real-time
The world moving towards 24/7 services
Also in (retail) payments pressure to move from
traditional t+1 towards “real-time” is growing
In some countries (e.g. UK, SE, DK, FI, PL, SG,
MEX, etc.) national instant payment systems exist
In Europe, pan-European instant payment systems
are being built
13.11.2017 Seppo Honkapohja 35
36. Suomen Pankki – Finlands Bank – Bank of Finland Unrestricted
Trend (3): Payments are becoming
embedded into the service
Payments become integrated into the buying process, game,
social media or other user experience.
Payment details are submitted only once, but transactions can
happen frequently.
Consumer is not necessarily aware of making payments.
Makes individual financial management more demanding – there is
a need for better financial literacy.
13.11.2017 Seppo Honkapohja 36
37. Suomen Pankki – Finlands Bank – Bank of Finland Unrestricted
A contrasting case: cross-border
payments (1)
The area of cross-border (c-b) payments is ripe for
major change.
c-b payments still feature long-chains of operations
and multiple intermediaries. [See Figure in next slide]
– Account-based systems with capturing, messaging, two-legged
settlement, and disbursement.
These are handled by multiple intermediaries.
Transfers are costly, cumbersome and opaque.
– Personal example: I had to cash a cheque from US.
It took at least five days and transaction cost was significant
(about 9%).
– Operations involve substantial fixed and sunk costs as well as
network effects.
There can be market concentrations.
13.11.2017 Seppo Honkapohja 37
38. Suomen Pankki – Finlands Bank – Bank of Finland Unrestricted
Contrasting case: cross-border
payments (2)
13.11.2017 Seppo Honkapohja 38
39. Suomen Pankki – Finlands Bank – Bank of Finland Unrestricted
On c-b payment innovations
Innovations are creating new and more efficient
methods for making intra-country payments.
– DLT can in principle be used in different ways.
– So far, the potential gains are ”can/would be”.
One area is speed, transparency and end-to-end
tracking of c-b payments.
Costs of compliance can be reduced through KYC and
digital identity procedures to share customer
information.
– Privacy and security issues can arise.
New techniques like DLT can lead to new means of
payment.
– E.g. hub-and-spoke payments network with digital wallets of virtual
currencies. [See Figure in next slide]
– Possible concerns: erratic valuation of currencies, lack of trust,
operability issues.
13.11.2017 Seppo Honkapohja 39
40. Suomen Pankki – Finlands Bank – Bank of Finland Unrestricted
On Payment Innovations: virtual
transactions
13.11.2017 Seppo Honkapohja 40
Fiat
Money
Means of
Exchange
Private
Virtual
Currencies
HUB SPOKESSPOKES
Digital
Wallets
Means of
Exchange
Fiat
Money
VIRTUAL TRANSACTIONS
Hub-and-Spoke Network, Source: IMF (2017)
Digital
Wallets
41. Suomen Pankki – Finlands Bank – Bank of Finland Unrestricted
The Single Euro Payments Area (SEPA)
as an example facilitating cross-border
payments
13.11.2017 Seppo Honkapohja 41
Source: ECB; http://www.ecb.europa.eu/paym/retpaym/html/index.en.html
42. Suomen Pankki – Finlands Bank – Bank of Finland Unrestricted
European regulation in the retail payments is
evolving: Payment Services Directive (PSD2)
EU legislation for regulating payment services and payments
service providers in Europe, has been part of national legislation
since 2009.
PSD2 is an update to the directive and has to be implemented into
national legislation by 13.1.2018.
PSD2 will enable bank customers to use third-party providers
to access their payment accounts and to initiate payments on their
behalf.
Banks are obliged to provide access to accounts to third-party
providers through APIs.
– This allows third parties to develop their own services on top of the infrastructure and data
owned by banks.
Through this legislation, the EU aims to increase innovation,
improve consumer protection, and improve the security of
payments.
13.11.2017 Seppo Honkapohja 42
43. Suomen Pankki – Finlands Bank – Bank of Finland Unrestricted
On the potential effects of Payment
Service Directive 2
Payment Services Directive 2 (PSD2) is not only about
payments.
PSD2 forces banks to open their payment infrastructure
to all third-party providers.
– Customers are free to choose.
For banks, payments are the most frequent touchpoint
to their customers.
– losing this interaction would mean that banks risk fading into
background.
Payments also provide data which can be used to
analyze customer behavior
– Identifying profitable customer segments
– Analyzing credit risk
– Creating cross-selling opportunities
Also Payment Account Directive (PAD) 2014:
– Basic banking services for everyone.
13.11.2017 Seppo Honkapohja 43
44. Suomen Pankki – Finlands Bank – Bank of Finland Unrestricted
4. Conclusions and policy
considerations
13.11.2017 Seppo Honkapohja 44
45. Suomen Pankki – Finlands Bank – Bank of Finland Unrestricted
Conclusions and policy considerations (1)
Fintech has the potential to shape the financial
industry.
– Startups and big IT-firms are entering the financial markets to compete
with incumbents
Retail payments are an area where the new products
and players have already entered.
– In Europe, the regulatory framework (e.g. PSD2) is also facilitating
change in the playing field.
=> The supply side of financial services is changing
In this changing environment, authorities should focus to
preserve security and reliability of financial services.
=> trust will remain the necessary precondition for
financial services also in the future.
13.11.2017 Seppo Honkapohja 45
46. Suomen Pankki – Finlands Bank – Bank of Finland Unrestricted
Conclusions and policy considerations (2)
Key focus areas for authorities:
Competition
– Increased competition in services but further consolidation of
financial infrastructures are to be expected.
Resilience
– Digitalization holds promise of better resilience through
decentralization but can also lead to increased vulnerabilities
Integrity
– Protection of sensitive customer data and legitimate privacy
Access and inclusivity
– Certain financial services must be regarded as necessities
13.11.2017 Seppo Honkapohja 46
47. Suomen Pankki – Finlands Bank – Bank of Finland Unrestricted
Thank you!
13.11.2017 Seppo Honkapohja 47
Editor's Notes
To appreciate the importance of innovation and new technology on the economy, we need to look at economic development in the long run
The big question: Why has our standard of living improved so much over last two centuries?
Kuva: Raatajat rahanalaiset eli Kaski, Eero Järnefelt, 1893.
Kaski = burn-clearing
Considering the world as a whole, human wellbeing has improved on many dimensions - such as income, health and education.
These charts summarise how living conditions have improved since 1820 by illustrating the world population as if it consisted of 100 people.
For example in 1820, out of a 100 people 94 were living in extreme poverty. Since the this share has decreased dramatically and dropped to 10 out of a 100 in 2015.
This chart contains many stories. It shows the rise in the standard of living measured by GDP per capita from 1860 onwards.
Even though living conditions have improved on average globally, the level of development and growth rate varies between countries. Growth is not inevitable.
Finland used to be a relatively poor compared to other western countries. After the Second World War our country industrialized rapidly by investing heavily in new productive technology. The growth rate accelerated and by the end of the century Finland had caught up other European countries.
Indonesia and other Asian countries have also improved rapidly over the recent decades, and are catching up the western countries in living standards.
What then causes economies to grow over the long run?
A broad consensus among economists is that, in the long run, the growth in living standards is driven by productivity growth.
This chart from Finland illustrates that trend growth rate of labour productivity and GDP per capita go hand in hand.
Other than for temporary periods, such as recessions, growth in productivity and living standards do not deviate.
Productivity growth is driven by technological development.
In this context, technology should be interpreted in a broad sense: it determines how different factors of production can be combined to produce goods and services.
Especially important for macroeconomic growth are so called general purpose technologies, which can be utilized broadly in different sectors of the economy.
The impact of general purpose technologies can be seen as waves of productivity growth.
The diffusion of new innovations typically takes time. Productivity growth typically accelerates with a considerable lag.
After the innovation of steam power, it took about a century for its effect to reach its peak. The diffusion of electricity and the combustion engine was faster, but still took several decades.
When the benefits from the new technology have been reaped, growth tends to slow down – until something new is invented.
Advances in information and communication technology caused a smaller and shorter wave of productivity growth around the turn of the millennium.
Since then productivity growth has slowed down.
The so called techno-optimists argue that the full potential of ICT has not yet been seen. They expect a second wave of productivity growth, often called digitalization.
Digitalization is not only about digitization, which simply refers to the process of transforming data into a digital form.
The biggest impact from new technologies often comes not from the technology itself, but because they enable to reorganize production in a completely new way.
Simply doing old things in a digital format has a limited effect on productivity.
Digitalization refers to a widespread economic and social transformation made possible by the development of information and communication technology
Artificial intelligence and robotization have the potential to transform how work and production is organized in a fundamental way.
The question, whether digitalization will be in par with the previous waves of productivity growth, has divided economist in to two camps. [Recall earlier figure]
Pessimist argue that
the effect of ICT has been mostly limited to entertainment and communication, and that
the most productive applications of ICT (the so called low hanging fruits) have already been utilized (e.g. ATMs in the banking industry).
They also point to the productivity statistics. Robert Solow quipped in 1987 "You can see the computer age everywhere but in the productivity statistics.“ This notion is now known as the productivity paradox.
Optimists on the other hand believe that the best is yet to come and argue that
artificial intelligence and robotization will revolutionize the economy.
They also point to potential measurement problems in productivity statistics and to the fact that the rate of innovation measured in patents ,for example, has not decreased.
The effects of digitalization can already be seen in many statistics, even though it is still missing from productivity statistics.
The prices of ICT-equipment and services have fallen at an exponential rate.
For example, the quality adjusted prices of personal computers have dropped by over 90% over the last 20 years.
Today computers, smartphones and internet connections can be found in almost all households in Finland. Finnish consumers have always been at the forefront in adopting new digital technologies.
The rise in the prevalence of ICT-goods in households began already at the end of the 1990s.
We can note two distinct phases in the development.
First came traditional mobile phones and tabletop computers. Their adoption took almost 20 years.
The second phase, the rise of smartphones and mobile internet, has been much quicker. Smartphones have become almost ubiquitous in less than 10 years.
The growth in use of new mobile technologies is clearly visible in the transfer volumes of mobile data.
Mobile data volumes have nearly doubled every year over the last 10 years.
Today, almost 10 times more data is transferred in just one day than in the year 2007 as a whole.
Technological development together with the decline in the price and the increase in the prevalence of ICT-goods means that more and more applications of digital technologies have become both technically feasible and commercially profitable.
After our general review on the potential impacts of innovations and technological development on economic growth, let’s now move on to effects of innovation in financial markets
We can start with the effects of innovation in financial systems.
The fundamentals of the financial system are described here by three different levels:
1.The first level (top of the Chart) concerns “conditioning” elements of financial systems that do not change very fast and therefore tend to be taken as given by market participants (“fundamentals”).
2. The second level (middle of the Chart) relates to the outcomes of financial systems; how well they function (“performance”).
3. The third level (bottom of the Chart) anchors the discussion in the performance of the economy as a whole, focusing on standard economic objectives (notably growth and price stability).
Digitalization and IT technology are changing many parts of the financial system, but we focus on retail payments, which belongs to the circled part of the top panel – “Market infrastructures”.
In fact, retail payment systems play an important role also at the second level: i.e. in the financial efficiency and financial stability.
For example, we can pose questions about the impact of retail payments innovation on the performance of the financial system itself. (middle level)
Moreover, we can also pose questions on the impact of retail payment innovations on the broader economy and society. Here questions of economic efficiency, growth and price stability are one area of importance.
I will come back to these later on in my presentation.
Let us begin by looking at the impact of finance on economic growth. More specifically, let’s look at the question “Can there be too much finance?”
This is a picture adopted from the OECD Working Paper 1223 from 2015 “Finance and economic growth in OECD and G20 countries” by Cournéde & Denk.
Dotted lines indicate 90% confidence paths.
In the picture, we can see first the positive then negative association between intermediated credit and GDP growth per capita.
According to their results, “too much finance” can be harmful.
Their results also indicate that at current levels of household and business credit further expansion slows rather than boosts growth.
Do we also have other views? (Next slide)
Also other views exists:
For example, Durusu-Ciftci, Ispir & Yetkiner (2017) find that by fostering the development of a country’s financial sector, economic growth will be accelerated.
They show that debt from credit markets and equity from stock markets are two long run determinants of GDP per capita.
Their panel data analyses reveal that both channels have positive long-run effects on steady-state level of GDP per capita, and the contribution of the credit markets is substantially greater.
As a policy implication, they recommend that policy makers place special emphasis on implementing policies that result in the deepening of financial markets, including institutional and legal measures to strengthen creditor and investor rights and contract enforcement.
When we move on to narrower topic of financial innovation and economic growth, the empirical analyses are rather scarce due to the lack of data on financial innovation.
For a recent review on innovation-growth view and innovation-fragility view, see e.g. Beck, Chen, Lin & Song (2016) “The bright and the dark sides”, Journal of Banking and Finance, Volume 72, November 2016.
Their paper is one of the first to assess the relationship between financial innovation, on the one hand, and bank growth and fragility, as well as economic growth, on the other hand.
They find that different measures of financial innovations are associated with faster bank growth, but also higher bank fragility and worse bank performance during the recent crisis.
They conclude that in spite of these seemingly ambiguous findings, their evidence points to a positive net effect of financial innovation on economic growth: financial innovation is associated with higher growth in countries and industries with better growth opportunities.
As just seen in our previous slides, some literature on the contribution of financial system to productivity and economic growth exists but with ”some mixed results”.
Corresponding studies on our topic today, payment systems, are not numerous but some analyses exist.
The question of impact of payments systems, esp. electronic systems, on banking efficiency etc. is well studied, but
studies on the possible further impact on economic growth and societal well-being is much less studied.
On example of the latter is the study by Hasan et al. (2013). In the slide, you see one picture from their study in a VoXEU article in 2014:
It displays the relationship between “number of paperless payment per inhabitant” and country’s credit rating. Clearly a positive relationship exists (at least in Europe): “the more advanced (paperless) are the payment systems, the better is the country’s credit rating.
In the paper, the authors also argue that retail payment transaction technology itself is associated positively to real economic aggregates.
Let’s next look at some other studies conducted on the topic: “Payment systems and economic growth”.
In this slide, you can see results from some other recent studies using different methodologies.
Hasan, De Renziz and Schmiedel (2012), BOF DP 19 2012 and ECB WP No. 1572, 2013. (https://helda.helsinki.fi/bof/bitstream/handle/123456789/7811/170343.pdf;jsessionid=B5A76188EF04A674DF452253194DE81D?sequence=1)
Electronic payment instruments have overall a positive impact on economic development
Tee and Ong (2016), Cashless payments and economic growth, Financial Innovation (2016) 2:4. (https://rd.springer.com/article/10.1186/s40854-016-0023-z) [This study refers top potential negative effects: corrupution, debt problems especially for young people,, etc.
The impact of adopting cashless payment on economic growth can only be significantly observed in the long run
Zandi, Koropeckyj, Singh and Matsiras (2017), The Impact of electronic payments on economic growth, Moody’s Analytics (2017). (https://usa.visa.com/dam/VCOM/download/visa-everywhere/global-impact/impact-of-electronic-payments-on-economic-growth.pdf) . These results come from simple regressions without robustness checks.
Increasing use of electronic payments boosts consumption and GDP, and the impact increases as penetration rises. Effect on the global level is 0,1% of GDP.
Ilyes & Varga (2016) Macroeconomic effects of the increase in electronic payments – a general equilibrium approach using Hungarian data, Financial and Economic Review, June 2016. (https://econpapers.repec.org/article/mnbfinrev/v_3a15_3ay_3a2016_3ai_3a2_3ap_3a129-152.htm).
Utilise a DSGE model to study impacts on the performance of the Hungarian economy if retail cash payments were substituted with card payments. Results show both positive indirect and direct effects.
CONCLUSION: (1) effects of payment systems on aggregate growth are small but probably positive. BUT (2) break-down of payments system in a country would have quick and strong effects. Payment are like a blood vascular system systems for an economy.
In the following, we will focus on innovations in financial services and financial stability
Let’s next take a closer look at the topic ”Financial services and Fintech; especially from the European viewpoint . The following is based on the recent European Banking Authority’s Discussion paper, EBA DP 2017/2)
Fintech is a global issue and it is being developed in every continent:
Use of technologies by financial services firms is not a new phenomenon
Internal technological solutions to service provision and to compliance with regulatory obligations;
Also outsourcing with external service providers has existed for long time.
But the rise of FinTech is a recent phenomenon
Definition of FinTech: Technology-enabled innovation in financial services that could result in new business models, applications, processes etc.
It has led to
*Increased technological, especially IT, investments
* As well as to appearance of a whole array of different firms:
* Incumbents (banks)
* specialized start-ups (often small firms)
* global telecom/technology companies (“GAFAA”: Google, Apple, Facebook, Amazon and Alibaba”. )
For central banks new Fintech players (both small startups and big IT giants) bring many positive opportunities:
Financial inclusion may improve: more people gain access to financial services
More players in the field mean also more competition that should lead to lower prices and better services
FinTechs can also bring along more efficient processes and financial intermediation
At the same time, they also pose several challenges:
Financial stability: new players with new business models enter into the markets and “steal” business from traditional banks, will the latter be able to survive if several their “traditional” business areas are affected?
Banking supervision: An essential question: how to ensure a regulatory and supervisory level playing field between different players? “If different players are doing the same business, they should be regulated and supervised in the same way”
Payment systems: If people are not using payment systems provided by traditional players, will they also start using other financial products by non-banks?
Transmission of monetary policy: If the role of banks in financial services declines, what does it mean for the conduct of monetary policy?
Currently it seems that these challenges are not materializing at least in the near future, but central bankers must keep on monitoring the developments in the market.
[Transmission of monetary policy: this is for questions and workshop]
Control of money supply and liquidity by central bank will be weakened.
Control by means of interest rates wil lremain, provided suitavble financial instruments and markets continue to exist.
European Banking Authority: “Discussion Paper on the EBA’s approach to financial technology (FinTech)” August 2017
Banking authorities and supervisors are interested in Fintech because its potential impact on financial system and its regulation and supervision
Main results:
* Significant percentage of services provision is not regulated.
- Regulation practices are likely to vary from country to country.
* However, stability problems with FinTech have not risen thus far.
- Rapid growth of FinTech => Important to remain alert
According to the European Banking Authority’s recent survey, FinTech seems to be becoming an increasingly significant part of the EU financial services sector
In fact, FinTech firms are active in many (almost all) areas of financial services.
It is interesting to note that the payment area (Cluster B) is well represented
Next we will analyse more in depth the payments field.
After the previous (semi)academic part, we move next on to look at the recent evolution of payment systems.
We focus on the retail payment systems and the developments in the retail payments field.
This slide displays (by increasing size of topics ) the ”hottest fields” in innovations in financial services.
It is clearly seen that “the hottest area” seems to be payments.
In the payments filed, there are a lot of new and ongoing developments. Mobile retail payments are increasing in popularity all over the world. Asia is a front-runner in many ways.
Also person-to-person (p2p) –payments are gaining popularity. In Europe, instant or real-time p2p-payments have seen a lot activity both at the pan-European level and at the national level.
P2p-instant payments are a hot topic in Europe: Pan-European initiatives will be launched in the near future. (The Eurosystem’s TIPS (TARGET INSTANT PAYMENT SETTLEMENT) should be operational in a year (November 2018).
In Finland, also a national instant mobile payment called Siirto was launched in March this year.
(NOTICE: with minor letters we have also blockchain and in a very small print bitcoin exchange.)
KUVAN LÄHDE: Bank of Finland
Drivers on payment developement are the same as ”megadrivers” in society in general
In the Internet age: consumers / customers expect that everthing is done almost instantly and is available 24/7
This also applies to payments: Consumers expect instantaneous transactions as well as easy and handy payment applications
In fact, these are not isolated trends but a paradigm shift in consumer behavior
In today’s world, consumers compare financial services to other services and expect the same usability and customer experience
Let’s bring our discussion to “local level”: In the picture, the development of mobile cellular subscriptions per 100 people is described both to Euro area and to Indonesia.
This is only general data, but today more and more mobile devices are used to offer also financial services.
As seen in the picture, Indonesia has a nice point of departure in this area.
In Finland, it is very common to utilize mobile phones and internet bank to use banking services, including making payment transactions.
Under the auspices of Finnish Payments Council (cooperation body for payment system users and providers as well as for relevant authorities where I was the Chairman) we conducted a study a year and a half ago: ”How do we pay in 2020’s? Views from different stakeholders”
Here are the three main trends that were observed in Finnish markets (and most likely also in many other European markets as well)
Let’s look at these trends more closely.
First Trend : Payment landscape has become fragmented
Compared to earlier decades, there are more and more different payment applications available.
There are several new actors providing customer interfaces and open interfaces enable ecosystems to evolve
This is a cumbersome situation for both consumers and merchants: which payment applications one should have and offer?
It is likely that there will be some convergence later on and only a handful of payment applications will remain in the market.
This is like a complex system in motion toward a new regime. Emergence of new regularities will happen in the longer run.
Second trend is that payments are becoming instant / real-time:
As already discussed, the world moving towards instant services available 24/7.
Also in (retail) payments pressure to move from traditional t+1 towards “real-time” is growing.
In some countries (e.g. UK, SE, DK, FI, PL, SG, MEX, etc.) national instant payment systems exist.
In Europe, pan-European instant payment systems are currently being built.
Third trend is that payments are becoming embedded into the service.
This means that payments become integrated into the buying process, game, social media or other user experience.
Payment details are submitted only once, but transactions can happen frequently.
A good example is Uber transport service where you only give once the card details and then only use the service.
This can lead to a situation where consumer is not necessarily aware of making payments.
This can make individual financial management more demanding and may lead, in worst case, to over-indebtness.
Therefore, there clearly exists a need for better financial literacy.
Compared to “simple and in most cases effective” national retail payments, the cross-border (retail) payments are often much more complicated and cumbersome.
Cross-border payments still feature long-chains of operations and multiple intermediaries.
Cross-border transfers are often costly, cumbersome and opaque.
PERSONAL EXAMPLE
Cross-border payments are complicated as can be seen in the picture.
Still today, payments through correspondent banks are far from being instant and also very expensive.
The same applies to money remittances
Accordingly, there is still a lot room for improvement in the cross-border payments field.
As seen in the previous picture, there is still room for improvements especially in the cross-border payments area.
Innovations, based e.g. on Distributed Ledger Technology (DLT), can create new and more efficient methods for making payments
So far no large-scale implementations have been seen and the potential gains have been ´”can/would be” –type, but you never know what happens tomorrow
For example, the application of DLT could improve speed, transparency and tracking of cross-border payments.
In KYC (Know Your Customer), privacy and security issues can rise.
However, it is possible that DLT techniques can lead to new means of payment: See “hub-and-spoke payments network” -Figure in next slide.
- Users exchange fiat money into a virtual currency (DLT-based tokens) held in digital wallets
through ATM machines, point of sales terminals, online interfaces, or other means (the spokes).
These tokens are then transferred, possibly across borders, over the virtual currency’s secure
network (the hub) to the payee’s digital wallet. Finally, tokens are exchanged into foreign fiat money,
as desired, through the same means as above (spokes again).
- Such networks are already being explored by Circle, Ripple, and Visa, for instance, through their “B2B Connect,” in
partnership with Chain. Commercial banks are also exploring the issuance of virtual currencies to facilitate
transactions between banks, possibly in different jurisdictions.
(Source: IMF, 2017, https://www.imf.org/en/Publications/Staff-Discussion-Notes/Issues/2017/06/16/Fintech-and-Financial-Services-Initial-Considerations-44985, p. 25)
The Single Euro Payments Area, SEPA is a nice example of already existing well-functioning cross-border payments between the countries. (For Euro area countries since February 2014, non-Euro area countries since October 2016)
SEPA has created in Europe an integrated harmonized payments area. (Naturally for payments between the SEPA-countries).
In SEPA, Europeans are able to make cashless payments throughout the euro area using a single payment account with the same basic conditions, regardless of their location.
For this purpose, all euro area retail payment markets are being transformed into one “domestic” market – the Single Euro Payments Area. Within SEPA, there is no difference between national and cross-border payments in euro.
The technological development is an important factor that has an effect on the development of retail payments.
The other important factor is naturally the legal framework.
Let’s next take a quick look at the European situation and the its payment legislation that supported the realisiation of previously mentioned SEPA.
EU legislation for regulating payment services and payments service providers in Europe, has been part of national legislation since 2009
PSD2 is an update to the directive and has to be implemented into national legislation 13.1.2018
PSD2 will enable bank customers to use third-party providers to access their payment accounts and to initiate payments on their behalf
(API=Application Programming Interface)
Let’s try next evaluate the potential effects PSD2 (eventhough predicting them, because of market dynamics, is very difficult)
First, it is important to emphasize that Payment Services Directive 2 (PSD2) is not only about payments.
This is so because PSD2 forces banks to open their payment infrastructure to all third-party providers; and customers are free to choose.
For banks, payments are the most frequent touchpoint to their customers: losing this interaction would mean that banks risk fading into background.
Moreover, payments also provide data which can be used to analyze customer behavior. This data can be used in
Identifying profitable customer segments
Analyzing credit risk
Creating cross-selling opportunities
Another piece of legislation that is important is Payment Account Directive (PAD): It quarantees basic banking services for everyone” (i.e. a bank account and means to use it)
DIRECTIVE 2014/92/EU OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL of 23 July 2014 on the comparability of fees related to payment accounts, payment account switching and access to payment accounts with basic features
http://eur-lex.europa.eu/legal-content/EN/TXT/?uri=celex%3A32014L0092
After our journey from effects of innovation at the level of whole economy, in financial services and finally in retail payment markets, we can now draw few main conclusions and some policy considerations.
Fintech and financial innovation do have the potential to shape the financial industry.
Already now we have seen that startups and big IT-firms (e.g. “GAFAAs”. Google, Apple, Facebook, Amazon, Alibaba) are entering the financial markets to compete with incumbents
However, it is very difficult to try to predict who will be winners in the long run.
Retail payments are an area where the new products and players have already entered (e.g. Alipay, Apple Pay, Google Wallet, etc.).
Retail payments are also visible to us all – we use them every day.
In addition to new players and new technologies, also legislative framework can contribute to the change in financial markets.
In Europe, the regulatory framework (e.g. PSD2) is also facilitating the changing playing field
In sum, what seems to be certain is that the supply side of financial services is changing.
Only the timing and magnitude of change are a bit uncertain.
In this changing environment, authorities should focus to preserve security and reliability of financial services.
In financial services is essential (It’s any my money at stake!). Loosing trust can therefore be detrimental to whole business!
Accordingly, trust will remain the necessary precondition for financial services also in the future
Competition
Increased competition in services but further consolidation of financial infrastructures are to be expected.
Need to find ways to prevent the abuse of market power by dominant players.
Could lead even to macroprudential risks (systemic importance, procyclicality)?
Resilience
Digitalization holds promise of better resilience through decentralization but can also lead to increased vulnerabilities.
Commercial operators may not put sufficient weight on systemic resilience by their own initiative, so policy is required.
Cyber risks more generally are a concern.
Integrity
Protection of sensitive customer data and legitimate privacy.
Customer control of the commercial use of their data.
Access and inclusivity
Certain financial services must be regarded as necessities.
Technological advances should not lead to the exclusion of population groups who are less lucrative customers.