Prudential Regulatory and Supervisory Practices for Fintech: Payments, Credit and Deposits

This report reviews progress in prudential regulatory practices related to three basic fintech products—transaction accounts, credit, and payments. It examines advanced and emerging markets and developing economies and, based on that examination, highlights four priority areas for strengthening regulation.

Financial regulators are making strides to improve their understanding of fintech and to address potential associated prudential risks, but four areas remain worrisome: oversight of cloud computing service providers, capital and liquidity levels for fintech firms, extension of safety nets to resources held by nonbank e-money providers and embracing suptech.