Creating more competition in the financial market, fintech developments cut prices for consumers, offering them better and faster services. They also empower users, democratizing financial services and making them more inclusive. Due to greater decentralization and depth of the market, the financial system becomes more resilient.
New credit channels for households and SMEs reduce the risks of disruptions in bank credit due to economic distress. On top of this, there are obvious gains in terms of financial efficiency and productivity of capital allocation. What do we – as a central bank – do to maximize these benefits?