Fintechs Not a Threat to Banks, Regulators Say
At the annual meeting of the IMF-World Bank last Thursday, regulators assured that fintechs will not be a threat to banks. However, they also called on financial authorities to make sure that traditional lenders are well-equipped to handle the changes these businesses will bring to their industry.
Indonesian finance minister Sri Mulyani Indrawati, who was also a panelist, said that technology can be used not only to innovate, but also prod incumbents such as banks to improve their business models
The two monetary organizations also jointly published a paper called the Bali Fintech Agenda which aims to help policymakers achieve a balance between encouraging financial innovation and protecting the stability of the system.