Location: WESTIN-BICC Mangupura Hall
JOIN THE CONVERSATION: #BALIFINTECH
This panel will discuss the wide-ranging opportunities and challenges raised by technology in potentially transforming the economic and financial landscape. Fintech can support growth and poverty reduction by strengthening financial development, inclusion, and efficiency but may also pose risks to financial stability and integrity, as well as to consumer and investor protection.
Opening Remarks: Joko Widodo, President, Indonesia
Introduction: Perry Warjiyo, Governor, Bank Indonesia
Moderator: Geoff Cutmore, Anchor, CNBC
Christine Lagarde, Managing Director, IMF
Sri Mulyani Indrawati, Founder, Afrika Youth Movement
Mark Carney, Chair, Financial Stability Board
Lesetja Kganyago, Chair of International Monetary and Financial Committee
Jim Yong Kim, President, World Bank Group
Fintech promises to support growth and reduce poverty by strengthening financial development, inclusion, and efficiency. But technological advancements present a number of risks and challenges for policymakers and regulators.
A light touch. President Widodo opened the session by outlining his vision for a “light touch” approach to regulation that fosters innovation in a new era of fintech advancements.
Guiding principles. Lagarde noted that the Bali fintech principles were based on two priorities: boosting financial inclusion and preserving financial stability. She stressed the importance of effective regulation and advocated for international regulatory cooperation, guided by the Bali principles, so as to avoid forum shopping and abuse of the system.
Inclusive globalization. Carney highlighted the potentially revolutionary and positive effects fintech could have in a wide range of areas, such as reducing the costs of cross-border transactions and combating corruption and terrorism through know-you-customer solutions. But at the heart of fintech’s promise is its potential to create a more inclusive financial system for consumers and corporations. Consequently, regulators and policymakers had the opportunity to create a framework that supports truly inclusive globalization.
Smart regulation, smart regulators. Indrawati outlined the challenge regulators faced in fostering fintech while also protecting stability. Technology firms and fintech innovations were blurring the lines between the real sector and the financial sector, resulting in a number of complex questions about taxation, regulation, and data protection. Kganyago noted that the object of regulation should not only be preserving financial stability but also bringing more people into the financial system. Given the rapid evolution of fintech, this would require hiring a new generation of regulators with backgrounds in technology and data science.
“Today we are again in the midst of another great flowering of internet-based innovations, and more dramatically, today’s internet boom is reaching deep into the foundation of the economy, into the very payments that are the lifeblood of daily commerce.” President Joko Widodo
“What we have is disruption that is caused by a lot of innovators, and it doesn’t belong to advanced economies or a category of people.” Christine Lagarde
“In a global economy that is redistributing itself—it’s much more peer-to-peer, it’s much more integrated with global supply chains—this is the promise of inclusive globalization. Fintech can help make that work.” Mark Carney
“[The question is] how to embrace, enable, enforce, and foster this new technology in the financial sectors while at the same time making sure that this change does not severely disrupt social or economic stability.” Sri Mulyani Indrawati
“If indeed what fintech is doing is to deliver financial services in a smart way, we need smart regulators.” Lesetja Kganyago
“What we’re doing with the Bali Fintech Agenda is inviting disruption on our institutions.” Jim Yong Kim
Contributor: John Bishop
Geoff Cutmore isco-anchor for CNBC's flagship Squawk Box programin EMEA.The three-hour show, which broadcasts worldwide five days a week, bookends the opening of European equity markets and is a must-see for financial professionals, C-suite executives and investors.Cutmore is one of CNBC's most experienced presenters, with more than 20 years covering the financial markets. He has anchored programs for CNBC in both Europe and Asia and has particular interest in China having spent nearly a decade working in Hong Kong.Cutmore covers the biggest business gatherings for CNBC including the World Economic Forum meetings in Davos and China, the IMF/World Bank Annual Meetings in Washington, D.C. and the United Nations Climate Change Conferences. He regularly hosts key panels at these events with top newsmakers. Twitter: @GeoffCutmore.
|Managing Director, IMF|
Christine Lagarde is a French lawyer and politician who has been the Managing Director (MD) of the International Monetary Fund (IMF) since 5 July 2011.
Previously, she held various, senior ministerial posts in the French government: she was Minister of Economic Affairs, Finance and Employment, Minister of Agriculture and Fishing and Minister of Trade in the government of Dominique de Villepin. An anti-trust and labor lawyer, Lagarde was the first female chair of major international law firm Baker & McKenzie, between 1999 and 2004.
|Sri Mulyani Indrawati|
|Chair of the Development Committee|
Sri Mulyani Indrawati is Chair of the Development Committee and Indonesia’s Finance Minister since 2016. In 2002, she was the Executive Director representing 12 countries in the South East Asia (SEA Group) at the IMF. From 2005-2010, In 2005, she served as Finance Minister. In June 2010 she was appointed as Executive Director of the World Bank Group. She earned her BA in economics from the Universitas Indonesia in 1986 and her PhD in Economics in 1992. Instagram: @smindrawati
|Chair, Financial Stability Board|
Mark Carney, Chair of the Financial Stability Board, is Governor of the Bank of England and Chairman of the Monetary Policy Committee, Financial Policy Committee and the Board of the Prudential Regulation Authority. His appointment as Governor was approved by Her Majesty the Queen on 26 November 2012. The Governor joined the Bank on 1 July 2013. In addition to his duties as Governor of the Bank of England, he serves as Chairman of the Financial Stability Board (FSB), First Vice-Chair of the European Systemic Risk Board, a member of the Group of Thirty and the Foundation Board of the World Economic Forum. He is also Chair of the Global Economy Meeting (GEM) and the Economic Consultative Committee (ECC) at the Bank for International Settlements. As recently reported in the press, Mark Carney will stay in charge until 2020, despite being sharply criticized by those who support Britain’s withdrawal from the European Union (No Deal Brexit). Twitter: (@bankofengland)
|Chair of the International Monetary and Financial Committee|
Lesetja Kganyago was appointed Governor of the South African Reserve Bank (SARB) with effect from 9 November 2014. Prior to his elevation as Governor, Lesetja Kganyago served as Deputy Governor of the South African Reserve Bank (SARB) and as the Chairperson of the Standing Committee on the Revision of the Banks Act. He was also a member of the the Board Risk and Ethics Committee (BREC), the Governor’s Executive Committee (GEC), the Monetary Policy Committee (MPC) and the Financial Stability Committee (FSC). He was also a member of the Financial Stability Board Standing Committee on Standards Implementation (SCSI) and Co-Chair of the Financial Stability Board Regional Consultative Group for Sub-Saharan Africa. He represented South Africa in international organizations such as the World Bank, the IMF, the G20 and the African Development Bank. In this role he served as the Chair of the Development Committee Deputies and also co-chaired a G20 Working Group on the reform of the IMF. Mr. Kganyago holds a MSc in Economics from SOAS London University and a BCom degree in Economics and Accounting from UNISA. He also received various training in Finance, Economics and Management. Twitter: @KganyagoLesetja
|Jim Yong Kim|
|President, World Bank Group|
Jim Yong Kim M.D., Ph.D., is the 12th President of the World Bank Group. Soon after he assumed his position in July 2012, the organization established two goals to guide its work: to end extreme poverty by 2030; and to boost shared prosperity, focusing on the bottom 40% of the population in developing countries. In September 2016, the World Bank Group Board unanimously reappointed Kim to a second five-year term as President.
During his first term, the World Bank Group supported the development priorities of countries at levels never seen outside a financial crisis and, with our partners, achieved two successive, record replenishments of the World Bank Group's fund for the poorest. The institution also launched several innovative financial instruments including facilities to address infrastructure needs, prevent pandemics, and help the millions of people forcibly displaced from their homes by climate shocks, conflict, and violence.
Kim's career has revolved around health, education, and improving the lives of the poor. Before joining the World Bank Group, Kim, a physician and anthropologist, served as the President of Dartmouth College and held professorships at Harvard Medical School and the Harvard School of Public Health. From 2003 to 2005, as director of the World Health Organization's HIV/AIDS department, he led the "3 by 5" initiative, the first-ever global goal for AIDS treatment, which greatly to expand access to antiretroviral medication in developing countries. In 1987, Kim co-founded Partners in Health, a non-profit medical organization that now works in poor communities on four continents.
Kim has received a MacArthur "Genius" Fellowship, was recognized as one of America's "25 Best Leaders" by U.S. News & World Report and was named one of TIME magazine's "100 Most Influential People in the World."