Course Details

Supervision of FinTech and Digital Banking Innovations Training Course

INTRODUCTION

This essential training course provides comprehensive knowledge and practical skills for effectively supervising FinTech and Digital Banking Innovations. In an era of rapid technological advancement, financial regulators and supervisors face unprecedented challenges in maintaining financial stability, protecting consumers, and fostering responsible innovation. Supervision of FinTech and Digital Banking Innovations Training Course  equips participants with a systematic understanding of the evolving FinTech landscape, emerging digital banking models, and the regulatory tools and strategies necessary to oversee these innovations. Participants will gain deep insights into risk assessment for novel technologies, adapting regulatory frameworks, leveraging supervisory technology (SupTech), and promoting a balanced approach that encourages innovation while mitigating systemic risks and ensuring market integrity.

This course is designed to empower financial authorities and industry professionals to navigate the complexities of digital finance, ensuring that their oversight capabilities keep pace with technological change. It moves beyond traditional banking supervision to address the unique characteristics of FinTech, including decentralized finance, artificial intelligence in finance, and new payment systems, making it crucial for safeguarding the future of the financial ecosystem.

DURATION

10 days

TARGET AUDIENCE

This course is specifically designed for professionals involved in financial sector regulation, supervision, and policy-making, as well as those in financial institutions dealing with digital transformation, including:

• Central Bank Officials and Regulators.
• Banking Supervisors and Examiners.
• Financial Stability Departments Staff.
• Policy Makers in Finance Ministries.
• Risk and Compliance Officers in Financial Institutions.

OBJECTIVES

Upon completion of this course, participants will be able to:

• Understand the core concepts and latest trends in FinTech and Digital Banking.
• Analyze the key risks and opportunities presented by financial innovations.
• Evaluate existing regulatory frameworks and identify areas for adaptation.
• Explore the application of Supervisory Technology (SupTech) for enhanced oversight.
• Develop effective strategies for balancing innovation with financial stability and consumer protection.

MODULES

Module 1: Understanding the FinTech and Digital Banking Landscape

• Define FinTech, Digital Banking, and key emerging technologies (e.g., blockchain, AI).
• Explore the evolution of digital financial services and new business models.
• Understand the drivers of FinTech innovation and its impact on traditional finance.
• Discuss the concept of challenger banks, neobanks, and embedded finance.
• Examine global trends and regional variations in FinTech adoption and development.

Module 2: Regulatory Challenges and Approaches for Digital Finance

• Understand the unique regulatory challenges posed by FinTech (e.g., jurisdictional arbitrage, data privacy, cyber risk).
• Discuss the objectives of FinTech regulation (e.g., financial stability, market integrity, consumer protection).
• Explore different regulatory philosophies (e.g., technology-neutral, activity-based).
• Examine the role of international cooperation and standard-setting bodies.
• Learn about balancing innovation with risk mitigation in regulatory design.

Module 3: Prudential Supervision of Digital Banks and FinTech Firms

• Understand the application of prudential principles (e.g., capital adequacy, liquidity) to digital banks.
• Discuss risk management frameworks for FinTech innovations (e.g., operational risk, technology risk, credit risk).
• Explore the supervision of new business models, such as Banking-as-a-Service (BaaS).
• Examine cross-border supervisory challenges for digitally native financial entities.
• Learn about ensuring resilience and recovery planning for digital financial services.

Module 4: Conduct and Consumer Protection in Digital Finance

• Understand the consumer protection issues in FinTech (e.g., disclosure, fairness, redress mechanisms).
• Discuss the supervision of digital lending, crowdfunding, and robo-advisory services.
• Explore ethical considerations in the use of Artificial Intelligence (AI) for financial services.
• Examine regulations related to data privacy, cybersecurity, and digital identity management.
• Learn about addressing financial exclusion and promoting responsible innovation for consumer benefit.

Module 5: Digital Payment Systems and Digital Currencies

• Understand the regulatory implications of new payment systems (e.g., mobile money, instant payments).
• Discuss the supervision of stablecoins and other crypto-assets.
• Explore the concept and potential impact of Central Bank Digital Currencies (CBDCs).
• Examine frameworks for combating illicit financial flows in digital payment ecosystems.
• Learn about ensuring interoperability and security in a fragmented payment landscape.

Module 6: Regulatory Sandboxes and Innovation Hubs

• Define regulatory sandboxes and innovation hubs as tools for fostering responsible innovation.
• Discuss the design and implementation of effective sandbox programs.
• Explore criteria for admitting FinTech firms into regulatory innovation initiatives.
• Examine the role of supervisors in guiding and learning from sandbox participants.
• Learn about measuring the effectiveness and impact of innovation facilitators.

Module 7: Supervisory Technology (SupTech) and Regulatory Technology (RegTech)

• Understand the application of technology to enhance supervisory processes (SupTech).
• Discuss how RegTech solutions can aid financial institutions in regulatory compliance.
• Explore the use of big data analytics, AI, and machine learning in supervision.
• Examine real-time monitoring and automated reporting capabilities in SupTech.
• Learn about the challenges and opportunities of adopting SupTech and RegTech.

Module 8: Future of FinTech Supervision and International Cooperation

• Understand emerging trends and potential future FinTech innovations (e.g., Decentralized Finance (DeFi), Web3).
• Discuss strategies for developing adaptive and agile regulatory frameworks.
• Explore the importance of international collaboration in supervising global FinTech players.
• Examine case studies of global regulatory responses and best practices.
• Learn about building internal capacity and expertise to keep pace with financial innovation.
• CERTIFICATION
• Upon successful completion of this training, participants will be issued with a Macskills Training and Development Institute Certificate
• TRAINING VENUE
• Training will be held at Macskills Training Centre. We also tailor make the training upon request at different locations across the world.
• AIRPORT PICK UP AND ACCOMMODATION
• Airport pick up and accommodation is arranged upon request
• TERMS OF PAYMENT
• Payment should be made to Macskills Development Institute bank account before the start of the training and receipts sent to info@macskillsdevelopment.com