Featured Product

    BIS Presents Results of IFC Survey on Fintech Data Issues

    February 25, 2020

    BIS published a report on the fintech data issues based on a 2019 survey conducted by the Irving Fisher Committee on Central Bank Statistics (IFC). In view of the varying impact of fintech across countries and financial sub-sectors, it is essential to ensure that central bank statistics remain comprehensive, accurate, and timely so that they can effectively support policy. The IFC survey focused on four major themes—data demands among central bank users, data gaps, ongoing data collection exercises, and initiatives for further improvement. The report highlights that, to close the identified data gaps, it is key that fintech entities be adequately covered in the statistical reporting perimeter.

    Regarding the central bank statisticians and their need for high-quality data to support policy making, fintech gives rise to a number of issues. To shed light on these issues, IFC conducted a survey among its members in 2019. The survey reveals a significant need for fintech data among central bank users, with the strongest requests expressed by the units in charge of payment systems. Information demands are particularly high in the jurisdictions where fintech is most developed. Users are typically interested in lists of fintech entities and on statistics on fintech credit. A key confirmation of the survey is that fintech is creating important data gaps:

    • Fintech firms can be classified outside the financial sector if, for instance, they were initially set up as IT companies; such classification issues can be reinforced by the fact that these firms are often small, diverse, and not easy to identify.
    • Another issue relates to the lack of granularity of the current statistical framework, since major data collection exercises group together non-bank financial institutions.
    • Traditional financial institutions have been embracing innovation by sponsoring technological startups treated as directly controlled affiliates, implying that their fintech activities are blurred in consolidated groups’ reports.
    • A large majority of central banks (more than 80%) consider that adjusting reporting requirements as well as collecting instrument-level data on fintech loans (for example, peer-to-peer) and fintech firms’ financial statements would be “very or at least normally helpful.” 

    To close these data gaps, it is key that fintech entities be adequately covered in the statistical reporting perimeter. Currently, central banks are applying this principle in an ad hoc manner, by assessing new fintech firms on a case-by-case basis in close cooperation with other domestic authorities. A number of initiatives perceived as potentially important, such as adjusting reporting requirements or collecting loan-level data, are implemented in only a limited number of jurisdictions, possibly reflecting their high implementation costs. Official business classification systems should be revisited to ensure that firms engaged in financial intermediation are systematically classified in the financial sector.

    Half of the central banks have launched initiatives to close data gaps. The majority of central banks report regular cooperation with other domestic authorities, which is essential to adequately cover fintech firms in official statistical frameworks. There is also a demand for stronger international coordination, not least to enhance classification standards and develop harmonized cross-country statistics, a precondition for any meaningful analysis of the impact of fintech firms on the global financial system.

     

    Related Link: Report (PDF)

     

    Keywords: International, Banking, IFC, Statistics, Big Data, Fintech, Data Gaps, Data Collection, BIS

    Related Articles
    News

    EBA Publishes Phase 2 of Technical Package on Reporting Framework 2.10

    EBA published phase 2 of the technical package on the reporting framework 2.10, providing the technical tools and specifications for implementation of EBA reporting requirements.

    July 10, 2020 WebPage Regulatory News
    News

    FASB Proposes to Delay Implementation of Insurance Contracts Standard

    FASB issued a proposed Accounting Standards Update that would grant insurance companies, adversely affected by the COVID-19 pandemic, an additional year to implement the Accounting Standards Update No. 2018-12 on targeted improvements to accounting for long-duration insurance contracts, or LDTI (Topic 944).

    July 09, 2020 WebPage Regulatory News
    News

    APRA Updates Regulatory Approach to Loan Deferrals Amid COVID Crisis

    APRA updated the regulatory approach for loans subject to repayment deferrals amid the COVID-19 crisis.

    July 09, 2020 WebPage Regulatory News
    News

    BCBS and FSB Set Out Recommendations for Benchmark Transition

    BCBS and FSB published a report on supervisory issues associated with benchmark transition.

    July 09, 2020 WebPage Regulatory News
    News

    IAIS Sets Out Recommendations for Benchmark Transition for Insurers

    IAIS published a report on supervisory issues associated with benchmark transition from an insurance perspective.

    July 09, 2020 WebPage Regulatory News
    News

    ESMA Updates Reporting Manual on European Single Electronic Format

    ESMA updated the reporting manual on the European Single Electronic Format (ESEF).

    July 09, 2020 WebPage Regulatory News
    News

    EBA Calls on Resolution Authorities to Consider Impact of COVID Crisis

    EBA published a statement on resolution planning in light of the COVID-19 pandemic.

    July 09, 2020 WebPage Regulatory News
    News

    BCBS Finalizes Revisions to Credit Valuation Adjustment Risk Framework

    BCBS Finalizes Revisions to Credit Valuation Adjustment Risk Framework

    July 08, 2020 WebPage Regulatory News
    News

    ECB Guideline on Materiality Threshold for Credit Obligations Past Due

    ECB published a guideline (2020/97), in the Official Journal of European Union, on the definition of materiality threshold for credit obligations past due for less significant institutions.

    July 08, 2020 WebPage Regulatory News
    News

    FED Temporarily Revises FR Y-14 With Respect to PPP and CARES Act

    FED temporarily revised the capital assessments and stress testing reports (FR Y-14A/Q/M) to implement the changes in response to the COVID-19 pandemic.

    July 08, 2020 WebPage Regulatory News
    RESULTS 1 - 10 OF 5458