A priority of the UNSGSA’s advocacy on technology-enabled innovation in financial services is to encourage good regulatory practices for FinTech. To ensure that FinTech is inclusive, safe, and responsible, it is vital that regulators have access to reputable advice when assessing, selecting, and implementing regulatory options.
Over the past three years, regulators in advanced, emerging, and developing economies have developed a number of promising initiatives to regulate and adapt regulatory frameworks for FinTech. These include innovation offices, regulatory sandboxes, and RegTech for regulators. Sharing their different national experiences is central to accelerating empirical evidence and creating good practices.
This report examines the potential impact of regulatory innovation on inclusive FinTech and distils early lessons learned. It also proposes Implementation Considerations for authorities seeking to enable inclusive FinTech through innovative regulatory initiatives of their own. The report builds on previous work in the field, including the G20 High-Level Principles (G20 HLP) for Digital Financial Inclusion (G20, 2016).
Semi-structured interviews with over 40 regulatory authorities and other subject matter experts in more than 20 advanced, emerging, and developing economies form the basis of this report. The methodology and a list of interviewees are set out in Annex 1.
Chapter 1 describes the relationships between financial innovation and financial inclusion. It discusses the dynamics of regulating FinTech and balancing regulatory objectives—from financial inclusion and consumer protection to financial stability and integrity.
Chapter 2 examines the three major innovative regulatory initiatives: innovation offices, regulatory sandboxes, and RegTech for regulators. It explains how each works in practice, its impact on financial inclusion, and key lessons learned. Case studies and examples illustrate insights and provide empirical evidence.
Chapter 3 presents practical, evidence based Implementation Considerations to assist regulators in emerging and developing economies with their own regulatory initiatives.