COPENHAGEN, Sept. 8 (Xinhua) -- The Governor of Danmarks Nationalbank Per Callesen on Tuesday called upon the financial services industry to further embrace financial technology to ensure a stable financial system at the China Financial Technology Forum being held within the 2020 China International Fair for Trade in Services (CIFTIS).
"I remain convinced that financial technology is a force for the good of solid cooperation between the industry regulators, and between IT experts, economists, and lawyers," said Callesen during his keynote speech delivered virtually from Denmark.
Even as Callesen called upon financial companies, which are already "predominantly IT companies", to further "welcome technological progress, new products," the head of the Danish central bank cautiously advised "regulators and the industry to be fully aware" that the "digital world poses new risks in financial services."
"Risk includes vulnerable or unstable equipment, human error, and outright crime, such as our cyber-attacks and concerns for privacy. Coping with such risk is costly....but it is indispensable for financial stability and the credibility of our financial institutions."
In addition, Callesen warned that the large looming shadow of global high tech companies, preparing to take advantage of their current lead in technology and enter the financial services world, may be a double-edged sword for them.
"If they start offering competing services, bank-like services, deposit facilities and thereby act as financial companies, it will have a bearing on how they are regulated, compelling competition authorities to also act if an excessive concentration of financial services takes place at the expense of consumers and rivals."
Meantime, Callesen also called on governments and central banks to resist the temptation of financial technology and stay within the area of expertise and avoid becoming players in financial services.
"Governments and the Central Banks should think twice before they start offering retail banking products in direct competition with existing private products even if technologies make it easier."
He acknowledged the intelligence of the global financial industry and its capacity to learn lessons, referring especially to the past global financial crisis when comparing it with the current coronavirus-lead global financial crisis.
The China Financial Technology Forum 2020 is currently being held at the China National Convention Center in Beijing, China.
The CIFTIS, the first major international economic and trade event held both online and offline by China since the COVID-19 outbreak, opened last Friday and has already been held six times since 2012. Enditem
