The Capital Meets Policy Dialogue
The Capital Meets Policy DialogueTM
By Invite Only
The rapid pace of technological innovation and adoption has resulted in increased regulatory considerations, which in turn has investors seeking answers. The Capital Meets Policy Dialogue is a timely first-of-its-kind call for policymakers to share their strategic perspectives on FinTech regulations, including sectors of interest and concern as well as their view on emerging risks. Conversely, the dialogue is an equal measure call for investors to share likely direction of capital, including sectoral investment outlook, opportunities, challenges, and risks. Above all, the dialogue is a call for both parties to share expectations more openly.
|9:50 AM||Welcome Address|
|10:00 – 10:45 AM||Keynote – The Rising Strategic Importance of Capital Meeting Policy|
|10:50 – 11:20 AM||Investors’ Perspective|
|11:25 – 11:55 AM||Policymakers’ Perspective|
|11:55 – 12:00 PM||Closing Remarks|
|12:00 – 2:00 PM||Lunch, Drinks and Networking|
Keynote: The Rising Strategic Importance of An Active Dialogue Between Capital and Policy Makers
Investments in FinTech have raised U$1Tn since 2010 in over 35,000 deals. Investor capital hence has been a significant source of innovation, customer experience improvements, financial inclusion, cost reduction, and value creation. Timely launch of regulatory sandboxes has played a meaningful role as an enabler.
With boundaries between innovators, social networks, digital platforms, and finance blurring, these introduce vulnerabilities and financial stability challenges. As an example, there has been growth in consumer-focused products that potentially contribute to speculative / risky behaviour (gamification of investing, crypto-currencies, BNPL).
In addition, there are financial stability risks posed by unsecured lending from FinTechs with inadequate capital and liquidity management measures. Data increasingly being used for credit evaluation to newer segments has yet to be battle-tested across economic cycles.
An open and continuous dialogue between capital providers and policy makers is needed to align market outcomes with policy objectives.
How can that then be done better?
WHO SHOULD ATTEND THE DIALOGUE?
Key innovation hubs got established firmly and globally – Singapore, New York, London, Berlin, and Hong Kong emerged as centres of choice. These centres attract innovators, talent, and capital, which helps create greater employment and economic growth.
Two key participants of the changing financials services ecosystem, namely Innovators and Investors, engaged actively through this phase, propelling innovation, challenging status quo, and winning early adopters.
Equity investment in FinTechs has raised a compelling $1Tn since 2010 across ~35,000 deals, with the majority raised in the past 5 years. Innovators were able to see their solutions mature as adoption continued to widen, helped in no small part by timely regulatory facilitation e.g., through launch of sandboxes, and by creating new-age challengers e.g., issuing of new digital bank licences.
However, not unexpectedly, this exponential growth and adoption of technological innovation, has also introduced new types of risks, both to end-consumers and only in small part, as yet, to the overall stability of the financial system. This, alongside the urgent need to address critical risks like from climate, has caused regulatory challenges.
The Capital Meets Policy Dialogue will enable capital providers to understand and influence regulatory direction, sooner and better. Concurrently, regulators too will be able to understand and supervise new business models sooner. Ultimately, regulators are able to better answer – what, when and how to regulate so that innovation thrives, capital thrives and so does humanity.