The Covid-19 pandemic has increased the regulatory priority around FinTech in the Asia-Pacific region, according to a report from University of Cambridge Judge Business School.
One of its findings is that regulators in the region were more optimistic about FinTech. It said 75% see its potential to support financial inclusion, compared to 70% globally, 70% see its use in the adoption of DFS (53% globally), and 60% see it as a boon to consumer protection (38% globally).
As for the pandemic, 85% of APAC regulators stated there was a high degree of resilience and adaptability within their organisations in reacting to the crisis.
Regulators in the region believed the Covid-19 pandemic increased risks related to FinTech, particularly cybersecurity, operational risks and consumer protection.
The main response from regulators were related to economic and cybersecurity, as well as customer onboarding, due diligence and business continuity. Furthermore, of those responding to the survey, 42% introduced measures for digital payments and remittances, slightly down from global levels of 61%.
More specific within digital payments, 90% of sampled jurisdictions in APAC have established regulatory frameworks. Additionally, 55% regulate the wider payments sector through a general regulatory framework, while 35% employ a specific digital payments framework.
Similarly, 90% of sampled jurisdictions in APAC have established a regulatory framework for e-Money. Of these, 55% regulate e-Money with a general payments framework that includes specific applications.
Other stats include that 85% of have framework for international remittances, 50% for P2P lending and 78% for crowdfunding.
The full report can be found here.
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