Scarlett Sieber, chief strategy and growth officer of Money20/20
BANGKOK: The significant presence of financial regulators at the Money20/20 conference is an indication of how these agencies increasingly recognise the importance of embracing new financial technologies (fintech) or risk their countries falling behind in the digital financial era.
Scarlett Sieber, chief strategy and growth officer of Money20/20, the US-based global fintech show, reckons that regulators now want to be active participants in the digital finance journey to ensure their countries remain competitive.
It is also about leveraging expertise within the industry to support them.
“The role of regulators in digital finance is important. If we just allow technology to go on its own (unchecked), you will have some issues.
“So, balance is important and regulators need to be equipped with the knowledge and expertise to help the fintech industry,” she tells StarBiz.
Sieber added that the Money20/20 conference is only in its second edition in Asia, having begun in 2012 in the United States.
Three years ago, the event made a strategic decision to focus on regulators.
“For the industry to move forward, regulation is key. Our team is made up of ex-bankers, venture capitalists and even journalists, who have built the content for our show and built relationships with key players.
“With Money20/20, regulators also utilise our platform to make announcements to the industry.”
Last year, the session with the Bank of Thailand (BoT) was the most popular, noted Sieber.
At the recent event, BoT deputy governor Roong Mallikamas, during her keynote presentation, highlighted the challenges of financial inclusion.
“Our region, a vibrant mosaic of economies, presents an unparalleled opportunity for fintech innovation,” she stated.
“Yet, a significant portion of our population remains unbanked or underbanked.
“For instance, studies indicate that over 60% of adults in some Asean nations lack access to formal financial services.”
She noted that Asean’s burgeoning digital economy is projected to surpass US$360bil by 2025.
To help unlock opportunities for underserved communities, the BoT is adopting a “3 Opens” framework – open competition, open infrastructure, and open data.
Roong explained that barriers to inclusion stem from limited data for credit assessment, a lack of transparency, and poor system interoperability, driving up customer acquisition costs for traditional banks.
She added that fintech firms, with their agility and data-centric approaches, are well-positioned to bridge this gap.
Meanwhile, Sieber added that at their recent event in Bangkok, regulators held a closed-door session to discuss crucial aspects of fintech development in South-East Asia.
A press statement issued by Money20/20 stated that the forum enabled regulators to share insights on national priorities, challenges, and opportunities in fintech and open finance.
Key takeaways from the session included the acknowledgement that increased collaboration between Asian nations could improve financial inclusion and drive the success of fintech and open finance across the region.
The regulators also agreed on the need to strengthen domestic data systems, expressed willingness to explore bilateral partnerships, and committed to pursuing broader regional collaboration. They acknowledging shared objectives, while paying respect to national differentiation.
The press release also stated that the regulators recognised data security and consumer privacy as “of paramount importance and will be treated as such.”
It said regulators aim to “enhance mutual understanding and dialogue through continued exchange of insights, challenges, and regulatory approaches in fintech.”
Money20/20 – now dubbed the world’s leading fintech show – took place over three days, with more than 3,000 attendees from 87 countries, including 24 Asia-Pacific countries.
Over 250 industry speakers from Asia shared four incredible stage, with key topics including artificial intelligence, cross-border payments, open banking, digital assets, central bank digital currencies, and financial inclusion.
