Featured Product

    BIS Report Presents Roadmap for Constructing Fintech Statistics

    July 24, 2020

    The Irving Fisher Committee on Central Bank Statistics (IFC) of BIS published a report that examines the implications of fintech for central bank statistics. The review conducted by the IFC Working Group on Fintech Data Issues finds that, as fintech transforms the financial sector, it also opens up data gaps in central bank statistics by introducing new financial products and bringing existing services to a larger market. Data gaps are prevalent as (internationally comparable) information on fintech is lacking in official statistics. In this context, the report presents a targeted roadmap to construct fintech statistics and presents recommendations for building the internationally harmonized fintech statistics.

    The presented roadmap consists of the following six steps:

    • The first one is to formulate a classification of fintech that encompasses the various financial market segments of fintech, as data gaps reflect that fintech companies engaged in financial intermediation are not systematically assigned to the financial sector (as identified by the International Standard Industrial Classification of all Economic Activities or ISIC)
    • Second, based on this definition, lists of fintech enterprises can be derived from various sources (for example, existing studies, registers).
    • Third, linking these lists to existing data in official statistics (for example, balance sheet data) will help to answer economic questions about fintech and allow a more comprehensive understanding of its potential development.
    • Fourth, intra- and inter-institutional cooperation shall be fostered, as data from different sources need to be linked, calling for active support of the related international initiatives that are underway (for example, to promote global identifiers).
    • Fifth, available data from the internet can be sourced (for example, through artificial-intelligence-supported web search).
    • Sixth, the resulting information set can usefully be complemented by surveys or compulsory reporting requirements on aspects for which data of sufficient quality are not available from other reliable sources; the working group notes that the information available varies from country to country, which can call for flexibly adjusting the various national strategies to construct fintech statistics.

    The report points out that some central banks are already producing statistics based on new reporting requirements. For example, Bank of Finland has set up new peer-to-peer and crowdfunding statistics. To satisfy the demand from national users for stability analysis and after the Ministry of Finance collected data for 2014–16 to support legislation, Bank of Finland launched an annual collection of crowdfunding and peer-to-peer lending statistics in 2018 and gained further experience over a period of two years. The lessons learned from this are that demand and interest in these new data exist, even though volumes are still low; rapid market developments and emergence of new players make it challenging to keep up with the reporting population; time investment is needed for reporting agent cooperation; experimental statistics can be set up in a cost-effective manner; and profiles of new funding channels are significantly different from traditional bank lending data. Based on its analysis, the Working Group recommends that central banks should:

    • Promote the global adoption of a revised classification of economic activities that better takes into consideration fintech service providers
    • Ensure that statistical methodologies used to measure fintech activities adhere to sound professional and scientific standards
    • Develop a comprehensive process to continuously monitor the situation and address fintech-related data issues that may arise
    • Leverage existing IT innovation and accelerate it by promoting technological solutions to facilitate the compilation of fintech statistics (for instance, by making resources available internationally by sharing IT tools through the BIS Innovation Hub


    Related Link: Report (PDF)

     

    Keywords: International, Banking, Insurance, Securities, Fintech, Statistics, IFC Working Group, Irving Fisher Committee, Artificial Intelligence, Data Gaps, Regtech, BIS

    Related Articles
    News

    BIS Report Notes Existing Gaps in Climate Risk Data at Central Banks

    A Consultative Group on Risk Management (CGRM) at the Bank for International Settlements (BIS) published a report that examines incorporation of climate risks into the international reserve management framework.

    July 29, 2022 WebPage Regulatory News
    News

    EBA Examines Remuneration Data and Use of Large Exposure Exemptions

    The European Banking Authority (EBA) published a report that examines the use of certain exemptions included in the large exposures regime under the Capital Requirements Regulation (CRR).

    July 22, 2022 WebPage Regulatory News
    News

    BoE Issues Update on Ongoing Data Transformation Program

    The Bank of England (BoE) issued a communication to firms to provide an update on the progress of the joint data transformation program—which is being led by BoE, the Financial Conduct Authority (FCA), and the industry—for the financial sector in UK.

    July 21, 2022 WebPage Regulatory News
    News

    EBA Issues Draft Methodology and Templates for 2023 Stress Tests

    The European Banking Authority (EBA) published the draft methodology, templates, and template guidance for the European Union-wide stress test in 2023.

    July 21, 2022 WebPage Regulatory News
    News

    EBA Issues SREP Guidelines and Standards for Investment Firms

    The European Banking Authority (EBA) and the European Securities and Markets Authority (ESMA) jointly published the final guidelines on common procedures and methodologies for the supervisory review and evaluation process (SREP) for investment firms.

    July 21, 2022 WebPage Regulatory News
    News

    BoE and PRA Publish Regulatory Updates for Financial Sector Entities

    The Prudential Regulatory Authority (PRA) proposed expectations, via CP8/22, in respect of changes to the instruments or claims that comprise unvested deferred sums awarded to material risk-takers as part of their variable pay.

    July 19, 2022 WebPage Regulatory News
    News

    EIOPA Issues Taxonomy for Solvency II Reporting, Issues Other Updates

    The European Insurance and Occupational Pensions Authority (EIOPA) published Version 2.7.0 of the Solvency II data point model (DPM) and XBRL taxonomy.

    July 16, 2022 WebPage Regulatory News
    News

    OSFI Updates Address BCAR Reporting, Basel Reforms, and Cyber Risk

    The Office of the Superintendent of Financial Institutions (OSFI) updated the 2023 Basel Capital Adequacy Reporting (BCAR) manual as well as the 2023 BCAR return.

    July 15, 2022 WebPage Regulatory News
    News

    FSB Report Outlines Progress on Climate Risk Roadmap

    In a letter to the G20 Leaders, ahead of the July 2022 meeting, the Financial Stability Board (FSB) Chair set out an overview of the key work done by FSB.

    July 14, 2022 WebPage Regulatory News
    News

    SRB Issues Resolvability Assessment and Bail-in Implementation Guide

    The Single Resolution Board (SRB) published its resolvability assessment and "heat map" for 2021, updated the operational guidance on implementation of bail-in tool, and issued the annual report for 2021.

    July 14, 2022 WebPage Regulatory News
    RESULTS 1 - 10 OF 8400