IMF Top woman warns of the Possible disruptive Influence of Fintech. Christine Lagarde, the senior woman of the international monetary fund (IMF), warns of the potentially disruptive influence that technology giants can have on the global financial system.
Financial technology, abbreviated to fintech, is undergoing rapid development.
Fintech has increased access to low-cost payment systems, but also raises concerns about the increasing dominance of “a handful” of large tech companies.
“A major disruption to the financial landscape is likely to come from large tech companies.
They will use their huge customer base and deep pockets to offer financial products based on big data and artificial intelligence,” stated Lagarde.
According to Lagarde, the rise of fintech is, therefore, a “unique challenge for financial maturity and efficiency”.
The IMF boss cites China as an example of a country where the benefits and challenges of financial technology are visible.
Here millions of people have benefited from access to financial products and many jobs have been created.
At the same time, 90 percent of the mobile payment market in China is in the hands of just two companies.