Source: Reserve Bank of New Zealand
Growth in technology-enabled innovation in financial services, labelled ‘FinTech’, has been significant in recent years.
A new article published in the Reserve Bank of New Zealand Bulletin summarises recent FinTech developments. It explains the technologies, giving examples across a number of broad FinTech categories, and explores their potential impact on the financial services industry, and on the Reserve Bank’s role as a regulator.
The article concludes that FinTech has the potential to enhance financial sector efficiency, but may also create new risks to financial sector stability. To date, the overall impacts have been small, and for now the appropriate response by the Reserve Bank is limited to increased monitoring of emerging FinTech developments.