A recent joint study from the Cambridge Centre for Alternative Finance (CCAF) located at the University of Cambridge together with the World Bank has discovered that the financial watchdogs are now prioritizing fintech business models to contribute to financial inclusion and enhance local economies, mainly in Emerging Markets and Developing Economies (EMDEs).
Notably, the 3rd Global Fintech Regulator Survey gathered data from around 128 global financial authorities in 106 jurisdictions, 70% of which were supervising fintechs in EMDEs.
The survey confirmed that prioritization of fintechs was most acute in Sub-Saharan Africa, where nearly 75% of participants reported a surge of recognition for fintechs, compared to 35% of those in advanced economies.
Their report highlighted that financial inclusion efforts are being furthered by fintechs throughout the world. The pandemic acted as a major catalyst for financial regulators to place lots of emphasis on financial startups to support local economies.
Nevertheless, financial authorities expressed lots of anxiety about consumer risks, cybersecurity, and fraud in the digital assets industry, based on the respondents. 78% reported that cybersecurity was their largest concern moving into the future.Buy Bitcoin Now
The global director of finance, competition, and innovation working at The World Bank Group, Jean Pesme, commented:
“At the World Bank, we see a growing demand from client countries for data-driven assessment tools of risk in financial services. In addition to seeking insights into the management of persistent and emerging risks, the survey has also explored how and where regulatory authorities are using different types of digital infrastructures to enhance regulatory and supervisory functions.”