Policymakers, BigFintechs and the United Nations Sustainable Development Goals

AIIFL | UNDP – UNCDF Technical Paper 3.1

Policymakers, BigFintechs and the United Nations Sustainable Development Goals by Artem Sergeev, Douglas Arner, Kuzi Charamba :: AIIFL-UNDP-UNCDF Technical Paper 3.1

Executive Summary: This technical paper examines existing regulatory frameworks relating to BigFintechs (BFTs) and their positive and negative impacts on the United Nations Sustainable Development Goals (the SDGs), with a particular focus on regulatory initiatives in relation to or originating from developing countries. The paper begins by highlighting the significant potential of BFTs in contributing to the SDGs through financial inclusion and provision of financial services. However, BFTs also create unique risks to the financial system as a result of platform economics and tendencies toward market concentration and dominance, misuse of data and gaps in existing regulatory standards. In response to these risks and opportunities, domestic and international policymakers have developed a range of regulatory approaches to digital technology, finance and sustainable development. Most of these regulatory processes and approaches are not specifically focused on BFTs or the SDGs; they also do not specifically address issues from a developing country perspective. Further, while regulators and policymakers are now focusing on digitization and sustainability-related risks, so far there appears to be little synergy between the governance of BFTs and the pursuit of the SDGs. Download the paper to continue reading