G20 Panel Discussions Explore Third-Party Risk Management in BigTech and FinTech

Correspondent Correspondent
Friday, July 14, 2023
G20 Panel Discussions Explore Third-Party Risk Management in BigTech and FinTech
G20 India Presidency Hosts Panel Discussions on BigTech and FinTech Policy Issues.
On the sidelines of the 3rd G20 Finance and Central Bank Deputies meeting, the G20 India Presidency organized two panel discussions to address policy matters concerning BigTech and FinTech, specifically focusing on the Third-Party Risk Management Framework.

The keynote address was delivered by Mr. T. Rabi Sankar, Deputy Governor of the Reserve Bank of India (RBI), who set the tone for the discussions. Mr. John Schindler, Secretary General of the Financial Stability Board (FSB), also gave a Special Address, providing insights into the FSB's Consultative Report on 'Enhancing Third-Party Risk Management and Oversight: A toolkit for financial institutions and financial authorities.'

During the panel discussions, participants explored various challenges related to third-party dependencies and engaged in conversations about evolving regulations for third-party service providers, including BigTech and FinTech. The objective was to strike a balance between implementing regulations and achieving public policy objectives. Additionally, the G20 delegates deliberated on ways to improve the efficiency and resilience of the financial system.

Considering the increasing interconnectedness and complexity of activities between BigTechs and financial institutions, the discussions revolved around establishing a framework that enables regulatory and supervisory bodies to effectively manage risks arising from non-financial entities entering the financial space. The panelists emphasized the need for globally accepted norms and regulations to ensure proper oversight of BigTech and FinTech entities that operate across multiple jurisdictions. The panel discussions under the G20 India Presidency aimed to foster global dialogue, promote information sharing, and provide valuable insights for future policy approaches.

The two panel discussions were moderated by Executive Directors of the RBI, Mr. Saurav Sinha and Mr. Ajay K. Choudhary. The panelists included Mr. Arthur Lindo from the Division of Supervision and Regulation, Federal Reserve Board; Mr. Vincent Loy, Assistant Managing Director (Technology) at the Monetary Authority of Singapore (MAS); Mr. Orlando Ruiz Fernández, Senior Technical Specialist from the Prudential Policy Directorate, Bank of England, for the first panel. The second panel consisted of Mr. Johannes Ehrentraud, Senior Advisor at the Financial Stability Institute (FSI); Mr. Prashant Kumar, MD & CEO of YES BANK; and Ms. Dorothee Delort, Senior Financial Sector Specialist at the World Bank.