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In two private roundtables at the 2024 Milken Institute Asia Summit and the 2024 Insights Forum, the Milken Institute and Global Finance and Technology Network gathered leading technologists, development banks, government officials, payment providers, and investors for off-the-record discussions on FinTech. All quotes throughout this report come from roundtable participants. Through these convenings, the Institute hopes to leverage its networks, thought leadership, and experience in innovative finance to help smooth and support the catalytic role of finance and technology in shifting businesses, regulators, and societies toward a more prosperous and inclusive future.

Key Takeaways

• Regulatory initiatives in open finance are expected to increase lending to small and medium-sized enterprises (SMEs), while helping consumers plan their finances long-term.
• Lower transaction fees have enabled the provision of credit lines on real-time payment infrastructures and cross-border remittances through stablecoins.
• Default rates have been surprisingly low among the unbanked, but overly easy access to finance still risks indebtedness, especially when predatory financing is targeted at vulnerable communities.
• AI is increasingly used by both sides: to create malware and intensify social engineering on one hand and, on the other, to power more secure forms of biometric authentication and counter fraud.
• Efforts are ongoing to share fraud data among stakeholders and to make fraud reporting easier. But stakeholders must collaborate to improve the culture of data security across their societies.
• While regulators must be more proactive in innovation and FinTech development, industry players must understand the full range of concerns regarding financial system stability and demonstrate tangible solutions to real-world problems.
• FinTech is just the means to broadening access, uplifting the underserved, and improving societal outcomes. By pursuing these goals with clarity and focus, FinTech innovators can inspire external talents and partners to join their mission.