IMF published a working paper that reviews the fintech landscape in the Middle East, North Africa, Afghanistan and Pakistan (MENAP) and Caucasus and Central Asia (CCA) regions. The report concludes that scale and pace of fintech in MENAP and CCA countries lags other regions and fintech is yet to foster an inclusive digital economy. Furthermore, cyber risks present a major challenge because of the potential systemic risks and interaction with other risks.
The report provides an overview of fintech, its definition, architecture, benefits and risks, and the required conditions to facilitate its sound development. It then discusses the fintech landscape in the MENAP and the CCA, highlighting its scale, structure and growth drivers, regulatory and supervisory practices in the two regions, the risks and vulnerabilities posed by emerging business models, and the factors hampering fintech growth potential. Next, the report discusses the value proposition for promoting fintech in the MENAP and CCA regions. Finally, it summarizes the findings and discusses the policy options to unlock fintech’s transformative potential.
Related Link: Report
Keywords: International, Banking, Fintech, Cyber Risk, Systemic Risk, MENAP, CCA, IMF
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