By [email protected]_84Posted on November 14, 2021 Table of Contents 
 
 Managing Technology in Finance: World wide Methods for the Digital Age 
 
 
 
 Opening Remarks by Deputy Controlling Director Bo Li 
 
 
 
 November 10, 2021 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 Great morning. I hope you are all healthier and nicely. It is a terrific pleasure to welcome you to this hugely topical panel discussion on “Managing Technological know-how in Finance: Worldwide Methods for the Digital Age.” I am joined by a panel of eminent authorities who will give deeper insights into the difficulties. Technological adjust has extensive been a driver of human progress. And the fiscal sector has been no exception. From the advancement of double-entry e book-holding, to the introduction of ATMs and modern-day payment systems—each wave of innovation has left its mark. The digital age has accelerated these traits: Detailed data on our actions, transactions, and behaviors are now remaining captured in substantial amounts as the Net Of Matters and mobile connectivity have exploded all over the globe. Massive boosts in computing energy utilized to this information are creating Synthetic Intelligence—or “AI”—less of a Hollywood film fantasy. And, extra and additional, AI devices execute duties that normally involve human intelligence. In the meantime, the information is filled with stories of the most recent hack of personal computer units and ensuing loss of assistance and particular knowledge. These tendencies are intertwined technologically, but we are only starting to realize several of the challenges. From the perspective of fiscal regulators, the crucial problem is how to experience the advantages of technologies in terms of monetary inclusion, effectiveness, risk administration, and oversight, though at the same time running the fiscal balance and integrity hazards. In 3 individual and new papers, IMF team have found potent complementarities across these concerns. They level to the will need for adapting plan techniques and regulation to these new worries, and to the need to have for enhanced cross-border cooperation to tackle threats that do not have nationwide boundaries. Shortly, we will check out these matters further more with the panel nowadays, but enable me now emphasize briefly the results from these three workstreams. 1st, on the digital economy and info. In today’s digital age, data has come to be a important, globally moveable good. But relocating it across borders necessitates international locations to have coherent procedures that create trust. With no world-wide concepts for handling knowledge, we could face deepening electronic fault traces in between nations, as enormous info swimming pools come to be progressively isolated. This would be especially costly for more compact and lower-revenue nations. The very good point is that recently G7 countries have announced some important ideas for cross-border motion of data, and that is a quite great start. Our knowledge can electrical power open finance and AI that can make societies additional successful, driving advancement, work, and finance. But there are also darkish sides. Info can be captured with out our productive consent by big platforms—creating new monopolies and steadiness dangers, and posing issues to nations to equilibrium person privacy with requirements to secure knowledge from cyber assaults. These issues have crucial implications for development, steadiness, and the intercontinental process, which are at the main of the IMF’s mandate and implies world-wide cooperation is desired to handle them. Nowadays, our panel will focus on how policymakers can deal with essential worries all over knowledge and the electronic financial system that span monetary balance and inclusion, levels of competition, and privacy. Next, on AI and machine understanding. The adoption of these technologies in the economical sector has accelerated in recent several years and is now far achieving. Rapid adoption of AI and equipment studying in finance can boost effectiveness, strengthen the client practical experience, and fortify hazard administration. They also electricity the instruments applied by regulators to improve prudential oversight and guidance the implementation of financial and macroprudential procedures. Feel of more productive source chains, or lending to beforehand unbanked small corporations close to the globe. But these systems also bring pitfalls, which includes from opacity, bias, and the scope for new sources of systemic danger, which include from higher interconnectedness. Policymakers will will need to confront these problems as they take into consideration likely regulatory methods. And, as we will discuss soon, the total extent of the strengths and weaknesses related with these systems is however to be completely comprehended. Third, on cyber chance. The profusion of knowledge and electronic platforms that hook up the environment has also enhanced options for destructive cyber hackers to disrupt sectors that depend on electronic methods. A single of the undesirable results of the new digital economic system and developments in technological innovation is that it widens the attack area, specially in just the money sector, which is at the forefront of information technology as nicely as technological innovation adoption. In the latest earlier, provide chain attacks and ransomware assaults have hit the headlines a lot more regularly. As a result, it is not stunning that cyber risk is just one of the topmost issues of governments, corporations, and buyers. In the economic sector, data confidentiality and integrity as effectively as the sleek operating of info techniques, are regularly threatened by cyber attackers. This generates a threat to economical stability—and is one particular that needs notice. Fiscal systems are at varying states of readiness to deal with this sort of assaults, and the intercontinental response is fragmented. Our panel dialogue will cover the most up-to-date IMF evaluation in this region, which has discovered main gaps that, if dealt with, could substantially minimize cyber risk, and support safeguard world wide fiscal steadiness. Overall, technological advances in finance really should be broadly welcome, with each other with preparations to seize their gains and mitigate likely challenges to the financial system’s integrity and safety. But numerous ways are essential to reinforce domestic and global plan frameworks on information, synthetic intelligence, and cybersecurity to advertise cooperation among international locations and regulators, and to make capability. I look ahead to talking about these concerns with our distinguished panel today. 
 
 IMF Communications Office MEDIA RELATIONS Push OFFICER: Nadya Saber Cellular phone: +1 202 623-7100E-mail: [email protected] @IMFSpokesperson 
 
 
 
 TECHNOLOGY Tags: AgeElectronicGlobalWays