The Future of Digital Payments
Dr. Jon Frost, Senior Economist, Innovation and the Digital Economy unit, Bank for International Settlements
This Master Class will be held by videoconferencing from 13h00 to 16h00
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 large 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 to promote the public good.
Objective
Building on academic and industry expertise as well as 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, and economic theory around two-sided markets and digital platform competition. Participants can expect new insights into digital payments and how to embrace technological change in their organization for the future. The focus of the discussions will center around the challenges for the banks related to changes in the 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 entry into payments, and the potential of crypto-assets, stablecoins and CBDCs
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Becoming familiar with data 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 in 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 Master Class is an acknowledged SAQ recertification measure for the CWMA, CCoB, Affluent-, SME-, and Individual Client Advisor profile and comprises four learning hours.