The Future of Digital Payments
Jon Frost, Senior Economist, Innovation and the Digital Economy unit, Bank for International Settlements
Currently FULLY BOOKED; registrations possible (waiting list)
Current Situation
Technology is disrupting payment markets. New Fintech and big tech providers are competing with banks to provide new digital payment solutions. Crypto assets, private sector stablecoins, and central bank digital currencies (CBDCs) could drive significant changes going forward. The COVID-19 pandemic has accelerated many of these changes. Financial institutions and regulators must decide how to respond to and shape these developments for the public good.
Objective
Building on academic and industry expertise as well as on international policy work, this Master Class will give insights into technological innovation in payment markets, including the special role of central banks and regulatory policy. The Master Class will discuss available data sources to monitor and assess shifts in payment markets, economic theory around two-sided markets, and digital platform competition. Participants can expect new insights into digital payments and how to embrace future technological change in their organization. The focus of discussion will center on the challenges banks face related to changes in payment markets. The format will be a combination of lectures, discussions, and group problem solving.
The objectives are:
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Understanding Fintech and big tech’s entry into the payments arena, and the potential of crypto assets, stablecoins, and CBDCs.
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Becoming familiar with the data required to assess changes in payment markets empirically.
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Gaining a firm grasp of the economics of payment markets, in particular two-sided markets and digital platform competition.
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Appreciating the policy choices and trade-offs facing central banks and regulators when shaping payment markets.
Target Audience
This Master Class is aimed at banking and finance professionals who work on retail or wholesale payments and those involved in projects on "how technology can reshape financial services."
SAQ Recertification
This SFI Master Class is an acknowledged SAQ recertification measure for CWMA, CCoB, Affluent-, SME-, and Individual Client Advisor profiles and comprises four learning hours (4 credits).