FMI and Fintech: Oversight and Innovation in Payments and Settlements 2021 - main page

FMI and Fintech: Oversight and Innovation in Payments and Settlements

FMI and Fintech: Oversight and Innovation in Payments and Settlements

May 17 – 20

Chair: Richard Heckinger, former vice-president and senior policy advisor, Federal Reserve Bank of Chicago

In 2021, advancements in financial technology continue to re-draw the oversight landscape. The challenge for overseers and regulators is to strike a balance between promoting innovation and protecting the financial system.

CBDCs, crypto assets and stablecoins present challenges and disruption to payments and settlements. Traditional methods of payment systems are becoming outdated and central banks are at risk of falling behind if they do not foster the new developments.

This course, ‘FMI and Fintech: Oversight and Innovation in Payments and Settlements’ is designed to equip central bankers to meet these challenges. Participants will gain a deeper understanding of key topics including the implications of digital money on payments and settlements, how FMIs are responding to Fintech, and the impact of technology on the oversight framework.

Each day will feature three hours of expert-led live content to maximise the opportunity to share and learn. The course chair will ensure participants have opportunities to network throughout the programme.

US timezone: 8am-11am (ET) |1pm-4pm (BST) | 8pm-11pm (SGT) 

Course Agenda

Two weeks prior to your training course you will be emailed access to our content hub with course materials, including a trial to Central Banking if you are not already subscribed. There will be a combination of articles, reports and presentations that will contribute to two hours of preparation time for the live content. Presentations for the sessions will also be held here subject to the speaker approval.

The Key Risks in the Changing Landscape of Payments

13:0013:15

Course introduction
Course introduction session led by the chair

13:00 - 13:15

  • Introductions and welcome from the chairperson
  • Overview of the training course
  • Discussion of the delegate expectations

13:1513:45

Impact of technology on the payments framework: key challenges in focus

12:15 - 13:15

  • The state of the art of financial technology in 2023

  • Key forces, trends and dynamics shaping financial market innovation

  • Unavoidable risks, critical challenges and emerging opportunities

  • Discussion: how do central banks need to change to make the most of fintech?

Richard Heckinger

Former vice-president and senior policy advisor

Federal Reserve Bank of Chicago

Richard Heckinger is a financial markets management professional. He retired in 2015 as Vice President and Senior Policy Advisor, Financial Markets Group, at the Federal Reserve Bank of Chicago. He started his career in financial markets at the Chicago Board Options Exchange in 1973, with subsequent executive positions at the Montreal (Stock) Exchange, the Chicago Mercantile Exchange as Clearing House Manager, and as Vice President, Financial Marketing, with a four-year posting in its London Representative Office. Following that, he was Chief Operating Officer and Council (Board) Member of the Stock Exchange of Hong Kong, and eventually Chief Executive and Board Member of its subsidiary, the Hong Kong Securities Clearing Corporation. After six years in Hong Kong he joined State Street Corp. in Boston as Senior Vice President, Global Operations. Other experience includes Head of the U.S. Representative Office for Deutsche Börse AG and Eurex. He has served on international committees, including a Federal Reserve Bank of New York working group, the OTC Derivatives Regulators’ Forum, SWIFT, and the International Securities Services Association (ISSA).  Presently, he is a Contributing Editor to the Central Banking Journal, Associate Editor of the Journal of Financial Market Infrastructure and a Member of the Editorial Advisory Board of the Global Commodities Applied Research Digest. He earned an M.Phil. degree in Economics from the London School of Economics, a B.A. degree in Mathematics from the Illinois State University, is a U.S. Army (Infantry) veteran and completed the Advanced Management Course at the University of Chicago.

13:4514:00

Break

13:45 - 14:00

14:0014:45

CBDCs, stablecoins and crypto assets: what are the implications for payments and settlements?

14:00 - 14:45

  • Differences and overlaps between privately issued crypto assets and central bank digital currencies (CBDC)

  • Building blocks of effective regulatory and supervisory frameworks for privately issued crypto assets

  • Implications of CBDCs for financial stability, payments and settlements

  • Discussion: do CBDCs represent a realistic and desirable goal?

Adolfo Sarmiento

Head of economic policy and markets

Central Bank of Uruguay

Adolfo Sarmiento is Head of Economic Policy and Markets, advising to the board at the Central Bank of Uruguay, he is responsible for the Monetary Policy implementation, and he’s also involved in FinTech specially in the CBDC Projects. He holds a degree in Economics of the University of the Republic of Uruguay, a Master in Applied Macroeconomics of the Catholic University of Chile and a PhD in Economics for the Catholic University of Argentina.

14:4515:00

Break

14:45 - 15:00

15:0015:45

Fintech and innovation: sandboxes, incubators and accelerators

15:00 - 15:45

  • Sandboxes, incubators and accelerators: a central bankers guide
  • Role and functions in innovation strategies
  • Tips for helping innovation comply with legal and regulatory requirements 
  • Issues for funding resourcing cross-jurisdictional cooperation
Brian Knight

Senior research fellow and director of innovation and governance

George Mason University

Brian Knight is the director of the Program on Financial Regulation and a senior research fellow at the Mercatus Center at George Mason University. His research focuses on numerous aspects of financial regulation, including the creation of pro-innovation regulatory environments and the role of federalism in fintech regulation. Prior to joining Mercatus, he worked for the Milken Institute, where he headed up the FinTech and Capital Access programs. Mr. Knight also has experience working for a broker-dealer with a focus on the emerging online private-placement market and was the co-founder of CrowdCheck, a company providing due-diligence and disclosure services to companies and intermediaries engaged in online private offerings. Mr. Knight received his Law degree from the University of Virginia and his bachelor’s degree from the College of William and Mary.

Regulating and Improving Payments

13:0013:45

Cross-border payments: a cooperative oversight

13:00 - 13:45

  • Overview of applications of DLT for cross-border payment frameworks
  • Key operational risks associated with the market platforms
  • Implications for legal and regulatory frameworks
  • Next steps and checkpoints in cross-jurisdiction regulatory and supervisory cooperation and coordination
Klaus Löber

Chair, CCP supervisory committee

European Securities and Markets Authority (ESMA)

Klaus Löber is the Chair of the CCP Supervisory Committee (CCP SC) in ESMA, which was established in 2020. His areas of responsibility encompass the tasks attributed by the European Market Infrastructure Regulation (EMIR) to the CCP SC, in particular the enhanced supervisory convergence towards EU CCPs and ensuring a resilient CCP landscape in the EU as well the monitoring and supervision of CCPs established in third countries in view of the risks that they may pose to the EU financial system. He is also chairing the ESMA CCP Policy Committee contributing to the EU Single Rule Book in the area of CCPs.

Prior to this role, Mr Löber was the Head of the Oversight Division of the European Central Bank in charge of the oversight of financial market infrastructures, payments instruments and schemes. Earlier positions include the Head of the Secretariat of the Committee on Payments and Market Infrastructures, the global standard setting body in the area of payments, clearing and settlement as well as positions in the European Commission, Deutsche Bundesbank and private practice.

Mr Löber regularly publishes on financial markets legal, regulatory and infrastructure issues and lectures at universities.

13:4514:00

Break

13:45 - 14:00

14:0014:45

Enabling CBDC and the role of digital identity in payments

14:00 - 14:45

  • Tokenisation for Realtime Settlement
  • CBDC experimentations
  • How digital identity can be integrated in compliance processes
Marjan Delatinne

Managing director - payments

SETL

Marjan is an entrepreneurial executive dedicated to business growth, profitability, and innovation by skillfully investing in the power of human capital and technology.

She has broad international experience, a deep understanding of business and financial markets, and a proven track record of creating and growing highly profitable businesses.  She enjoys establishing effective strategies and directing major initiatives from conceptual to implementation. 

She joined SETL as the Managing Director of Payments, to lead its mission and drive the commercial success in this space. She is responsible for the  definition and execution of the go to market strategy.

Previously, Marjan worked for Ripple as the Global Head of Banking and SWIFT where she was responsible for the commercialization of large scale projects both in securities and payments, namely Target 2 Securities and SWIFTgpi.

Marjan worked for Euroclear, BNY Mellon and held various positions in sales & network management divisions. 

Marjan has a university degree in Business Administration and research master degree in Experimental & Clinical Psychology.

In addition to English she is fluent in French and Scandinavian languages.

Women Power List 2017 & sitting on the board of directors of different associations and Neo banks.

Well known industry speaker. 

Joshua Daniel

Head of product strategy

SETL

Dr Joshua Daniel, Director of Payments at SETL. Joshua lead the work on Central Bank Digital Currency at SETL. He joined SETL after five years as the Lead for blockchain research and a Principal researcher at BT Applied Research in UK where has filed over 30 patents in Blockchain, Artificial Intelligence, Internet of Things and Cyber security. An aerospace engineer by undergraduation, Joshua has a PhD and BEng from University of Southampton, UK and has also worked for Rolls-Royce, UK.

14:4515:00

Break

14:45 - 15:00

15:0015:45

Financial inclusion and digital financial services

08:30 - 09:30

  • Overview of current state of Financial System Ecosystem
  • Understanding Financial Inclusion  
  • Mobile Money and Agency Banking 
  • Discussion: How is DFS enhancing financial inclusion?
Sachin Bansal

Independent Digital Financial Services and Financial Inclusion Consultant

Sachin has over 16 years of international experience in consulting, project management and operations in making financial services accessible to the un/underbanked people in more than 18 different countries. He has hands-on experience in Digital Financial Services (DFS), Microfinance and Financial Inclusion. He has cross-regional work experience of Asia, Africa and Oceania. He has worked with some of the largest Banks, Mobile Network Operators, technology companies, Microfinance institutions and other stakeholders such as Donors, Central banks and other Government bodies. He has strong skills in developing business strategy/models, product development, human centred design, market research, agent network design and management, agency banking, process re-engineering, business transformation and financial awareness. 

He is a certified trainer and has conducted many large-scale research studies and has published several papers. He has led technical assistance projects for capacity building of financial institutions and helped them explore alternative delivery channels (e/m banking). The primary focus of his work has always been to design and develop sustainable, effective and innovative systems; products and channels to promote the delivery of a wide range of client-centric, sustainable and technology-enabled financial services.  He is an Agricultural Engineering graduate with a management degree.

Use of Technology within Payments and Settlements

13:0013:45

How will big tech, DLT and digital money affect financial market infrastructure?

13:00 - 13:45

  • Financial market infrastructure: a guide to the new normal

  • Overview of key disruptive forces and dynamics challenging FMIs

  • How are FMIs changing to utilise fintech?

Dr Settor Kwabla Amediku

Director of payment systems

Bank of Ghana

Dr Settor Kwabla Amediku is currently the Chairperson of the Association of African Central Banks (AACB) Payment Systems Integration Working Group and also Chairperson of the Financial Inclusion and Data Working Group of the Alliance for Financial Inclusion, an international body advancing inclusive finance. He is also the AACB member of the Advisory Board of the Africa Financial Industry Summit initiative. Settor consulted for United Nations/ World Trade Organisation (WTO) and International Trade Centre (ITC) Switzerland, on Financial Sector Development and Trade in Financial Services and Development and was also engaged by the International Monetary Fund (IMF) as a short term expert in 2018 . He reviewed and proposed measures for the development of the Liberian payment systems.

He has over 26 years of experience in central banking as an economist and accountant specialising in Monetary Policy, Financial Services and Payment Systems development, Banking operations, Banking Supervision and Financial Stability. In 2015, Settor set up the Payment Systems Department and also put in place all the structures including facilitation of the passage of the Electronic Money Issuers and Agent Guidelines as well as the Payment Systems and Services Act 2019 (Act987).

Settor has also been instrumental in the establishment of the Financial Stability Department of the Bank of Ghana and in addition introduced various metrics that continue to guide the Monetary Policy Committee on the assessment of the banking sector. He is a Fellow of Association of Chartered Certified Accountant, United Kingdom and a member of the Institute of Chartered Accountants (Ghana). Settor served on the Technical and Research Committee of the Institute for two terms and on the Professional Standards and Ethics Committee of the Institute for a year.

He was educated in Ghana and the United Kingdom and holds Master of Philosophy in Monetary Economics and Finance from the Glasgow University, Scotland with a joint award as the best student in Monetary Economics in 2004. He took his doctoral degree in Finance from the SMC University, Switzerland.

13:4514:00

Break

13:45 - 14:00

14:0014:45

Making real-time payments a reality: an overseers’ guide

07:15 - 08:15

  • What is the distinction between wholesale and retail payments?
  • What are the different approaches central banks can take for real time payments?
  • Challenges that have arisen as more and more central banks create real- time payments
  • Opportunities from central bank experiences
Patrick Papsdorf

Head of payments oversight

European Central Bank

Patrick Papsdorf is Head of Section of Payments Oversight in the Directorate General Payments and Market Infrastructure (DG-MIP) at the European Central Bank (ECB). His area of responsibility comprises the oversight of payment systems and schemes, and encompasses the assessment of emerging risks and developments in the payments ecosystem, including aspects cyber resilience and financial innovation. Prior to this, Mr Papsdorf was Adviser to DG-MIP's Market Infrastructure Management Division, where he was in charge of analytical and compliance matters, and contributed to the operations and development of key market infrastructures.

Earlier positions include a commercial bank, the Deutsche Bundesbank and the Federal Reserve Bank of New York. Mr Papsdorf holds the German recognition as bank officer, a bachelor's degree in business management from the University of the Deutsche Bundesbank and a master in global management.

14:4515:00

Break

14:45 - 15:00

15:0015:45

Making cross-border payments instant and smooth

15:00 - 15:45

  • What makes a Payment instant?
  • Domestic versus cross-border payments.
  • Challenges to be addressed by banks and MI operators.
Carlo Palmers

Head of payments market infrastructures, marketing

SWIFT

Carlo looks after Market Infrastructures globally within SWIFT’s Products group, recently focusing on the integration with cross-border instant payments. Previously, Carlo managed the Payments Standards development, supporting the evolution from the SWIFT-proprietary standards towards ISO 20022, and worked in the SWIFT Corporate team, responsible for corporate connectivity to the SWIFT network. He represented SWIFT in international organisations, such as ISO, UN/CEFACT and the EPC. Before SWIFT, he worked in electronic banking at KBC Bank and participated in the creation of the Belgian domestic Isabel-platform.

Carlo Palmers has a master degree computer science from the University of Louvain, Belgium.

Strengthening the Future of Financial Market Infrastructures

13:0013:45

Suptech for FMIs: new opportunities and challenges

13:00 - 13:45

  • An introduction to Suptech
  • Use cases in central banking and FMIs
  • Examples of advanced technology-based solutions for stress testing and data analytics
  • Hands-on exercise: stress-testing in practice
Ademi Bektursunova

Research analyst

Financial Network Analytics

Ademi is a Research Analyst at FNA. Her area of expertise is information systems and data analytics. She has a particular interest in data visualization and simple communication of complex data systems.
Ademi joined FNA full-time in October 2020 after spending 5 months as an intern in the R&D team. She is currently involved in the development of new features for the FNA platform. Specifically, she collaborates with the Engineering team to oversee acceptance testing. Ademi also oversees external projects related to financial market infrastructures, including selected dashboards in FNA’s G20 Monitor. In addition, Ademi has collaborated in research projects related to the economic impact of COVID-19 on various sectors of the U.S. economy.
Ademi has a Master of Professional Studies in Informatics from Northeastern University and a Bachelor of Science in Information Technologies from Kazakh-British Technical University. 

Alejandro de la Concha Duarte

Data scientist

Financial Network Analytics

Alejandro is a PhD student at the École Normale Supérieure Paris-Saclay. His area of expertise is machine learning and currently, his research focuses on change-point detection on signals observed over graphs. Alejandro joined FNA in 2020 as a data scientist. He collaborates on projects related to the management of financial market infrastructures and oversees the development of investment strategies using natural language processing.
Prior to joining FNA, Alejandro worked for almost two years in the Directorate of Risk Management at the Bank of Mexico. During this time, Alejandro designed and implemented statistical and financial models to manage financial risks in the national reserve portfolio. His expertise on network analysis, also allowed him to collaborate on research projects aimed at assessing the stability of financial market infrastructures in Mexico.

13:4514:00

Break

13:45 - 14:00

14:0014:45

Applying network analytics and agent-based modelling in FMI design and oversight

14:00 - 14:45

  • Impact of fintech on the evolution of FMIs
  • Applications of advanced technology in the areas of network analytics and agent-based models for FMI oversight
  • Tips for collecting and effectively combining qualitative and quantitative statistics
Ivana Ruffini

Managing director of advanced analytics

FNA

At FNA, Ivana serves as a Subject Matter Expert and manages a team of data scientists who develop analytic solutions for FNA clients.

Prior to joining FNA in 2019, Ivana spent nine years at the Federal Reserve Bank of Chicago, where she utilized network theory to improve the understanding of the propagation of risk in the global financial system. She also analysed the impact and efficacy of regulations and customer protections in derivatives markets and helped inform policymakers on how changes in payment systems and financial market infrastructures may impact various participants in financial markets.

Ivana was also active in the alternative investment space as a private equity investment professional, a derivatives trader, and a credit risk specialist. Her prior employers include Baird Capital Partners, One Equity Partners, and JPMorgan.

Ivana graduated with honors from Denison University and did her graduate studies at Northwestern University. In addition to incorporating network theory in modeling financial markets, her research interests include the development of predictive analytics that utilizes machine learning and linking agent-based and Bayesian modeling.

14:4515:00

Break

14:45 - 15:00

15:0015:30

Closing remarks and delegate action plans
Concluding session led by the chair

15:45 - 16:15

  • Summary of the course
  • Discussion of the observed trends and case studies
  • Application of learning points in the delegates’ home organisations
  • Preparation of action points
Per Nymand-Andersen

Emeritus adviser

European Central Bank

 

Per Nymand-Andersen has over 25 years of Central Banking Experiences and was part of creating and developing the European Central Bank from scratch. Per has developed his expertise in banking and financial markets, fintech, data science, communications, securities settlement systems, statistics and Management.

Per holds several Fintech/data science Advisor Board positions in private and simi-public organisations. Per is a Lecture at Goethe-Universität Frankfurt and is a frequent speaker at international events and author of several publications/articles regarding financial markets, data science, communication and statistics. His recent renown book “Data science in Economics and Finance for Decision Makers” was published by Riskbooks.com.

Prior to joining the ECB, he provided market research consultancy services for the European Commission, Luxembourg.

Per has an MBA in Economics and Management Science from Copenhagen Business School, Denmark and has a Fintech certificate from Harvard University.

Per speaks four languages (English, German, French and Danish).

Further details: https://www.linkedin.com/in/per-nymand-andersen-81609913

The Implementation Workshop is a chair-led forum where attendees will have the opportunity to discuss challenges around implementing the ideas they have learnt during the Live Content. Prior to the workshop you will be emailed questions to prepare in order to gain the most from the session with peers.

13:0014:00

Implementation Workshop

11:00 - 12:00

Benefits of attending the Implementation Workshop: 

  • Developments in the area since the live content sessions, including new resource material
  • Questions arising since returning to the central bank
  • Challenges of implementation: where are the roadblocks?
  • Medium-term goals: what is realistic?
  • Establishment of group network to keep in touch with peers and share best practices

Learning outcomes

At the conclusion of the training, participants will be able to:

  • Understand how financial market infrastructures are responding to innovation
  • Assess the key challenges facing FMIs such as bigtech, CBDCs and DLT
  • Assess the opportunities for improving cross-border payments
  • Analyse the opportunities that Suptech is creating for FMIs
  • Apply network analytics to FMI design and oversight  

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Richard Heckinger

Former vice-president and senior policy advisor

Federal Reserve Bank of Chicago

Richard Heckinger is a financial markets management professional. He retired in 2015 as Vice President and Senior Policy Advisor, Financial Markets Group, at the Federal Reserve Bank of Chicago. He started his career in financial markets at the Chicago Board Options Exchange in 1973, with subsequent executive positions at the Montreal (Stock) Exchange, the Chicago Mercantile Exchange as Clearing House Manager, and as Vice President, Financial Marketing, with a four-year posting in its London Representative Office. Following that, he was Chief Operating Officer and Council (Board) Member of the Stock Exchange of Hong Kong, and eventually Chief Executive and Board Member of its subsidiary, the Hong Kong Securities Clearing Corporation. After six years in Hong Kong he joined State Street Corp. in Boston as Senior Vice President, Global Operations. Other experience includes Head of the U.S. Representative Office for Deutsche Börse AG and Eurex. He has served on international committees, including a Federal Reserve Bank of New York working group, the OTC Derivatives Regulators’ Forum, SWIFT, and the International Securities Services Association (ISSA).  Presently, he is a Contributing Editor to the Central Banking Journal, Associate Editor of the Journal of Financial Market Infrastructure and a Member of the Editorial Advisory Board of the Global Commodities Applied Research Digest. He earned an M.Phil. degree in Economics from the London School of Economics, a B.A. degree in Mathematics from the Illinois State University, is a U.S. Army (Infantry) veteran and completed the Advanced Management Course at the University of Chicago.