The rapid development of financial technology (fintech) has increased access to cheap payment and settlement systems for low-income households in emerging countries where traditional banking networks are scarce. But it has raised concern about the increasing dominance of big technology firms in mobile payments, which could force global policymakers to rethink the way they regulate the banking system and ensure financial settlements are executed safely. Christine Lagarde, managing director of the International Monetary Fund (IMF), speaks at the Group of 20 (G-20) high-level seminar on financial innovation "Our Future in the Digital Age", on the sidelines of the G-20 finance ministers and central bank governors meeting in Fukuoka, Japan, on Saturday, June 8, 2019. Kiyoshi Ota/Pool via REUTERSWhile such innovation may help modernise financial markets, they could make the financial system vulnerable such by putting payment and settlement systems under the control of a handful of technology giants, she added. “Over the last five years, technology growth in China has been extremely successful and allowed millions of new entrants to benefit from access to financial products and the creation of high-quality jobs,” she said.

Source: bd News24 June 08, 2019 04:41 UTC