AFI Innovative Regulatory Approaches Toolkit

Countries and economies around the world are seeking ways to foster their digital finance financial technology (‘FinTech’) ecosystems better support inclusion sustainable development. At core of such efforts supporting development new products services, bringing more competition consumer choice into systems increasing savings investment both individual community same time, potential innovation must also be balanced against risks, in particular stability, protection market integrity concerns. In order these objectives, regulators developing regulatory approaches, including hubs sandboxes (which we collectively term, ‘innovation facilities’) as well policy frameworks use for supervisory purposes (‘RegTech’ ‘SupTech’). Innovation facilities created offer direct indirect novel fintech initiatives a controlled environment. They underpinned by foundational infrastructure, mobile other communications especially internet access, identification (in sovereign systems), encourage simplified widespread opening money accounts, interoperable electronic payment systems. All above enable range e-government services an environment wider commercial development, progress towards UN Sustainable Development Goals (AFI 2018). Such infrastructure works best context appropriate proportional approaches innovation, FinTech. This includes general efficiency legal system, human capital research access information, availability financing. More narrowly, it depends on supervisorsthemselves (RegTech SupTech) achieve enhance 2020a). This Toolkit provides structured approach implementation considerations innovative authorities with jurisdiction over term ‘Regulators’). It aggregates variety resources case studies provide guidance Regulators answer following questions: 1. What facilities? 2. pre-requisites effective facilities? 3. When should consider implementing facility? 4. How implement hub? 5. sandbox? 6. steer regional cooperation facilities? This aims complement existing Alliance Financial Inclusion stakeholders through providing additional practical evaluation tools. In using this Toolkit, from AFI network beyond invited employ attached workbook, which self-assessments exercises help guide decision-making process.