Technological Changes in the Finance Industry: Regulation and Supervision Challenges

Abstract

Technological innovations evolve the global finance industry and make it convenient, quicker and cheaper for participants. Sources and drivers of financial innovations are different. Sometimes new financial products appear as a result of changes in business activity, expanding forms of international economic relations and even sanctions and restrictions imposed on individual countries can become a factor of innovations. The latter was a reason of a new national card system development in Russia. The MIR cards were issued as a response to the Western restrictions. The process of introduction of digital technologies in the payment and settlement turnover at the national and international level is considered on the example of the development of payment systems American Express, Visa, Mastercard and MIR. In spite of clear advantages new financial products in general and bank cards, in particular, can create threats and risks for society increasing, for instance, debt burden of households. New electronic technologies make global finance industry more accessible to households as well as more vulnerable to fraudsters and to those who use online financial platforms in their money laundering schemes.