FinTech and the Four Horsemen of the Apocalypse

Abstract

Plague, war, famine and death: the 2020s have so far been marked by the four horsemen of the apocalypse. Unlike in 1997 or 2008, finance has been not the cause of, but part of the effective response to, these crises. The decade of reforms following the 2008 global financial crisis have proven effective: finance has been largely resilient in the face of the crises of this decade, and played important roles in responding to the pandemic, war in Ukraine, and disasters in a wide range of developed and developing countries. The digitization of finance has been central to this positive role. To continue as a force for good, finance must continue to be resilient and provide systems for effective responses to the four horsemen, and to do this it needs to support financial stability, inclusion, innovation and wider sustainable development. The combination of resilience, inclusion, innovation and sustainable development is central to the transformation of the global economy and societies, so as to achieve the United Nations Sustainable Development Goals and respond to the existential threat of climate change. Digital finance, well regulated, has a central role to play in keeping the four horsemen at bay, and will be essential to respond to the increasing range of crises likely in coming decades. To realise this potential, FinTech and digital finance require a readjustment of approaches to the regulation of finance and technology.