Discussion Paper on Collaborative Business Models between Banks and FinTech for Green & Sustainable Growth

Abstract

The discussion paper aims to solicit response from different stakeholders, including supervisory agencies, for understanding the risks and likely benefits of collaborative business models between banks and FinTech with an added emphasis on bringing coherence in multiple supervisory priorities like promoting FinTech,addressing climate-risks and sustainable development (SDGs).Though business models for collaboration vary in different jurisdictions, few important examples can be taken to identify common elements that can be replicated in other jurisdictions. The risks inherent in such business models especially in the context of immaturity of such business models, incompatible governance framework, moral-hazard and opaque incentive structures, among others, need to be carefully weighed in terms of benefits relating to market efficiency through better product design and wider distribution. Further questions for discussion are presented in the Annex.