RegulationofFinTech

移動支付與科技監(jiān)管

MelbourneLawSchoolLAWS90110

23August2024P.M.Intensive

Topic6:MobilePaymentsProfessorJaneK.WinnUniversityofWashingtonSchoolofLawWinnRegulationofFinTech22Aug2024P.M.FinishTopic5:ElectronicFundTransfers&PaymentCardsTopic6:MobilePaymentsCourseTopics(Modules)Topic1:WhatIsFinTech&WhyDoesItMatter?Topic2:Business&PoliticsofBankingTopic3:TechInnovation/NewWayofSeeingTopic4:Regulation&GovernanceTopic5:EFTs&PaymentCardsTopic6:MobilePaymentsTopic7:Crypto&CBDCTopic8:DataGovern&OpenBankingTentativeCourseScheduleWed21August2024Thurs22August2024Fri23August2024Sat25Aug2024Sun26Aug2024Mon26August2024Tues27August2024Morning9:00-12:3010:30am30minbreak

Morning9:00-12:3010:30am30minbreakMorning9:00-12:3010:30am30minbreakMeetingswithstudentswishingtoproposepapertopicsMorning9:00-12:3010:30am30minbreakMorning9:00-12:3010:30am30minbreakTopic1:WhatIsFinTech&WhyDoesItMatter?FrameworkTopic3:TechInnovationCaseStudyTopic5:EFTs&PaymentCardsFinishanythingleftoverAug21-12CaseStudyTopic8:DataGovern&OpenBankingLunch12:30-1:30Lunch12:30-1:30Lunch12:30-1:30Lunch12:30-1:30Lunch12:30-1:30Afternoon1:30-5:003:00pm30minbreak

Afternoon1:30-5:003:00pm30minbreak

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Afternoon1:30-5:003:00pm30minbreak

Afternoon1:30-5:003:00pm30minbreak

FrameworkTopic2:Business&PoliticsofBankingFrameworkTopic4:Regulation&GovernanceCaseStudyTopic6:MobilePaymentsCaseStudyTopic7:Crypto&CBDCFinishUp&ExamReviewTopic6:MobilePaymentsTopic6:MobilePaymentsWinnMobilePaymentsinKenyaBrazilIndiaWinnChinaIndiaInnovationGovernanceCompetition2015CatoAFewThoughtsonRegulatorySandboxes2021ImpactRegSandboxonFinTechexcerpt2021EverythingyouneedtoknowaboutpilotprojectsSAPInnovationMetricsFigureOutWhichInnovationstoPursue2023MOJPBOCCommentsNewNBPIRegulationedited2024TwoThirdsChinaE-CommercePaymentsbyAlternativePaySvcs2024StateofChinaandGlobalMobilePayments2024GlobalTimesAdaptingChineseMobilePaymentsforForeignerUse2024StatistaUSmobilepaymentusePYMNTSUSMobileWalletAdoption2022BundesbankMobilepaymentusageinGermany20232022VisaUKStudyofMobilePaymentUseinEurope2024IndiaenhancesDigitalPublicInfrastructure2024IndiaUPIstandardsacceptanceoutsideIndiagrowing2024BBCCashstillrulesinIndiadespitedigitalpaymentboom2023AUReserveBankRegulateMobileWalletsFinancialInclusionOutsideofBanksKenyaKenya’sM-Pesaisthedarlingoftheinternationaldevelopmentcommunity,butisitamodel?Mobilepaymentswillsucceedwhenever:Pronouncedurban/ruraldisparitytriggersmigrationwithinonecountryWirelessdensityhigh,financialservicesdensitylowRegulatoryframeworkandmarketconditionssupportrapidadoptionCentralBankofKenyapermittedStolaunchM-PesawithoutaregulatoryframeworkinplaceTechnologydevelopedbyUKDepartmentforInternationalDevelopment&VodaphoneCSRformicrofinancebutitdidn’tworkSwasthemobilespinoffofoldnationalmonopolytelcoandhad70%wirelessmarketshare80%populationhadmobile,20%hadbankaccounts2008post-electionviolencestoppedbuscompaniesfromprovidingfundstransfertoruralareasRegulatoryframeworkcreatedlaterBut“innovationdesert”problemuntilM-Pesaexclusivityofagentsblocked,competitionbeganBrazilBrazilsuffersperiodicallyfromhyper-inflation,sobanksinvestincomputertechnologyHowtocalculateinflation-adjustedaccountbalanceswheninflationis10,000%ayear?GovernmentauthorizedCaixa’slotteryhousestoactasagentsin1970s,addedothernon-bankbusinessesinthe1990sBankscreatedtheboletointhe1980sAfterWorker’sPartyPresidentLulawaselected,banksmobilizedcorrespondentnetworksandboletosystemtodeliverBolsaFamiliapaymentsNotamobileecosystemPushingbenefitpaymentsouttoruralareasPeterDruckerIndia&ChinaInnovationGovernanceCompetitionFinancialRepressionIHowdoesfinanceworkinlessdevelopedcountriesbeforecommercialbanking?Notes&coinsfromgovernmentSelf-helpandmoneylendersMoneylenders:IlendyouNT$100,000today,nextweekyourepayNT$120,000民間標(biāo)會RotatingCreditAssociations12members,NT$1,000permontheachJanuary:Youbid9%interest,Ibid10%interestandwin,soeveryonecontributesNT$900,IgetNT$9,900inJanuary,repayNT$11,000February-DecemberFebruary:Shebids8%interest,youbid9%interest,youwin,soeveryonecontributesNT$910,yougetNT$10,100andyourepayNT$10,900(10monthsMarch-DecemberatNT$1,000+JanuaryatNT$900)...December:Neverbid,gets$11,000,paidinsomethinglikeNT$10,400,roughly6%returnStorewealthinphysicalassetsAfrica:cattleIndia:goldChina:realestateOther?Intheabsenceofcommercialbanking,nationaleconomicgrowthratewillbelowerFinancialRepressionIIModerngovernmentbuildsabankingsystem,usesittocollectsavingsfromthepublicanddirectinvestmentaccordingtoplanHolddepositinterestratesbelow“marketclearingrate”(freemarketsupply&demandrate)Allocateaccesstocheaploans[belowfreemarketinterestrate]tostate-ownedorprivateenterprisesaccordingtogovernmentprioritiesPrivateenterprisethatdoesnotgetaccesstocheaploansaccordingplanmustuseretainedprofits,moneylendersorrotatingcreditlotteriesSlowgrowthofsmallandmediumsizedenterprisesduetolackoffundingEconomicgrowthisdistorted:extra-fastgrowthundertheplan,extra-slowgrowthoutsideplanIfgovernmentbuildsinfrastructurepublicgoodslikecommunicationsnetworks,roads,airports,railroads,ports,etcthenlayingafoundationforfutureeconomicgrowth[China1978-2008]Ifeconomy*DOESN’T*needwhatgovernmentbuilds,thenresultisslowergrowthcomparedtocompetitivebankingmarket[WHITEELEPHANT]FinancialRepressionIIIWhathappenswhenyouswitchfromfinancialrepressionpolicytocompetitioninbanking?USSavings&LoanCrisis1986-1991Interestratecapof5.25%removedin1979,limitationonlendingforlocalhomeloansremovedManybadinvestmentsinspeculativerealestateIndustrycollapse1986,realestatemarketcollapse,governmentbailoutThereareno“savings&loanassociations”intheUStodayTaiwan大家樂IndiaMicrofinanceBubbleLate1990s:reductioningovernmentsubsidizedloanstopoorfarmers,liberalizationofmicrofinanceinstitutionlicensingrequirementsRapidexpansionintotalvolumeofmicrofinancelending1999-2009financedbycommercialbankcredittoMFIsMFIsstepintotheshoesoftraditionalmoneylenders:highinterestrates,harshcollectionmethodsCollapsein2009-2010,reformofregulationsChina’srecentattempttolicensePeer-to-PeerlendingplatformsIndia:LegacyoftheLicensingRajFinancialinclusionandcorruptionaremajorchallengesOnethirdofthepopulationhadnowaytoproveidentitybeforedigitalAadhaarsystemOnehalfofadultsareilliterate,havenobankaccountMandatestoopenaccountsforthepooronlyincreaseburdens,don’tdecreasethemDemonetizationmoderatelysuccessfulRBIprovidedverynarrowauthorizationfor“businesscorrespondents”and“mobilemoney”butimpossibletooperatethemprofitablyFinallybanksandotherswereoffered“paymentbank”licenses(nolending)RBIturnedovercontrolofthepaymentindustrytoNationalPaymentCorporationofIndiawhichlaunchedIMPSimmediatepaymentsystem,RuPaycard“IndiaStack”meansapplicationprogramminginterfacesforIMPSsystemLocalizedBusinessAgentStrategyPlatformOperator:nooneEssentialStakeholder:Bankslosemoneyon“nofrills”accounts,sodon’tconnecttocorebankingsystemCBSGovernmenthasmeasures,butthepeoplehavecountermeasures上有政策下有對策EssentialStakeholder:Agentslosemoneyon“nofrills”accountsnotconnectedtoCBSEssentialStakeholder:Consumerscan’tusetheir“nofrills”accountsnotconnectedtoCBSResult:“taxationbyregulation”butno“take-off”LocalizedMobilePaymentStrategy2008RBIbankmobilepaymentstrategyincentivesweak,no“take-off”201590millionMMIDsforImmediatePaymentServiceissued,transactionvolumegrowing2010RBIrevisionsallowedMobileNetworkOperatorstooffermobilemoneywithrestrictionsManymobilemoneyservicesauthorized,butstillno“take-off”2014RBIpaymentbankguidelinesissued,manyMobileNetworkOperatorsapplyRBIauthorizationbroadenoughtoachieve“take-off”?RiseofChineseMobilePaymentServicesHowCanChinaBeNumberOneintheWorldforFinTechInnovation

IfItIsStillaSocialistCountry?SocialismwithChineseCharacteristicsState-OwnedBanksinChinaIBankinginChinabefore1949LimitedcommercialbankactivityinurbancentersAfter1949RevolutionBankofChinaremainedopentoprovideforeignexchange,export-importfinanceOtherbanksmergedinto“Monobank”Ruralcreditcooperativesmanagedsavings,paymentinruralareasSovietStyleCentralPlanningNoneedforcommercialbankingbecausenofreedomtosetpricesforsavingsorinvestmentGovernmenttellsenterpriseshowmuchtoproduce,whatwagestopayandwhatpricestochargeTransactionsarerecordedintheMonobankandcomparedtothecentralplanSovieteconomicdevelopmentstrategy:paypeasantsinthecountrysideartificiallylowpricesforagriculturalgoods,setpricesofindustrialgoodsartificiallyhightosubsidizeindustrializationStateOwnedBanksinChinaIIIn1970s,Monobank+BankofChinabecame:People’sBankofChina:centralbankfunctionsICBCChinaConstructionBankAgricultureBankofChinaBankofChina1990sPolicybanks:AgricultureDevelopmentBank,ChinaDevelopmentBank,ChinaImport-ExportBank1990sCitycommercialbanks,privatecommercialbanksestablishedRuralcreditcooperativesbecamebanksStateOwnedBanksinChinaIIIBanksinChinaallocatecreditbasedoneconomicplansSmallpercentageofshareslistedonstockmarkets,governmentremainsmajorityownerofBig4MarketshareofBig4banksfellfrom80%around2000to50%todayNon-performingloancrisesinChinaBytheendofthe1990s,40%ofbankloansinChinawereNPL,governmentorganizedabail-out,by2010,only2%AnotherNPLcrisisloomingwithCOVIDlockdownsandcollapseofrealestatemarket?EarlyPRCElectronicPaymentsStrategy“NationalChampions”innationalindustrialpolicy/wiki/National_championsBoeing,EADS/Airbus1993PRCGoldenCardstrategy金卡工程GoldenShield金盾GoldenBridge金橋GoldenFinance(clearinghouse)金融GoldenTax金稅GoldenCustoms金關(guān)2001PRCWTOaccession,GATScommitmentfinalized2002UnionPaystrategylaunchedDevelopsglobalnetwork,nowthirdintheworldafterVisaandMasterCardMid-2000sUSbeginscomplaining,2010filesWTOdispute2012USwinsonmarketaccess,PRCwinson“monopoly”WhoisMaYun?馬云Motherandfatherwereworkers,alsoloved評彈traditionalmusicalstorytellingFaileduniversityentranceexamtwicebeforepassing,studiedEnglishatHangzhouTeacher’sCollege,workedasatourguide,Englishteacher1995triptoUSdiscoveredInternetinSeattleLaunchedChinaYellowPages中國黃頁,solditin1998Headedstate-ownede-commerceenterprisefor2yearsinBeijingReturnedtoHangzhou,startedAlibabajustintimeforDotComBubbleCrashBusinessmodel:bringbenefitsofe-commercetosmallandmediumsizedbusinesses民營企業(yè)“Disintermediate”theImport-ExportTradingCompanies,allowproducerstoworkdirectlywithcustomers武俠MartialArts江湖RiversandLakes水滸傳Water’sMargin/AllMenAreBrothers/OutlawsoftheMarshOutlawSongJiang宋江ProtectorofJustice呼保義grantedamnesty,servesemperorbutthenismurderedWhatisAlibaba?1999AlibabaB2BportalNotransactions,onlyadvertising2003TaobaocompeteswitheBayforC2C2004LaunchedAlipay2007ListedonHKStockExchange2009AlibabaCloudComputing2010LaunchedT-MallasaseparateB2Cexchange2012DelistedfromHongKong2013CreatesYu’EBao(LeftoverTreasure)moneymarketfund2013MaYunstepsdownasCEO2015ConvertedAlipaytoAntFinancial2015RaisedUS$25BillioninUSIPOIndigenousEntrepreneursMobilePaymentsinChinaQRtechnologyinventedin1994Alipaywaslaunchedin2004toeliminatetheneedfordeliverypersontocollectcashpaymentforTaobaopurchasesBy2010,almosteveryoneinChinahasabankaccountandaChinaUnionPaycardIn2010,People’sBankofChinaformallyauthorized“thirdpartypaymentsystems”tocompetewithbanksandChinaUnionPayIn2010,People’sBankofChinalaunchedInternetBankPaymentSystemAfter2010,almosteveryoneinChinagotsmartphonesthatcanscanQRcodesByaround2012,AlibabaandTencentwereeachoperatingsuccessfulmulti-sidedplatformsinChinawithmorethan500,000memberseachAllindividualusersandsmallbusinessusersappearasindividualsIntheAPIecosystemonmobilephones,advertisingcangenerateenoughrevenuetocoverthecostofasoftwarepaymentsystemwithPBOCsmallvaluepaymentsystemforclearing&settlementExplosivegrowthofWeChat,Alipaymobilepaymentsstartingin2015…Rumelt,GoodStrategy/BadStrategyWhydoesIkeahavenodirectcompetition?Ikea’scurrentbusinessmodelhasbeenaroundforabout50yearsEverypartofitiscompletelyvisibletoallitscompetitorsIkeaisveryprofitableandsuccessful,sowhynonewentrantsinthemarket?“Sustainablecompetitiveadvantage”requiresthetightintegrationofmanyfactorssimultaneouslyIkeaisgoodat“cheapandcheerful”designIkeastoresarelocatedontheedgeofbigcitieswherelandischeap,storesandparkinglotscanbehugeIkeaputsallproductsondisplaysocustomerscanseeforthemselvesIkeadesignerscreateforflat-packshippingandhomeassembly(“Ikeaeffect”)IkeacontrolsgloballyintegratedsupplychainstosellhugequantitiesofeachproductIfacompetitorcopiesoneortwoelementsofIkea’smodel,nosustainablecompetitiveadvantage;noonecanaffordtolaunchacompetitordoingallelementsatonceGettingoneortwoelementsworkinginisolationwillnotproducethesamebenefitsComplexinstitutionssucceedforfailformanyreasons,explanationsthatfocusononeortwofactorsareusuallyinaccurateDeFactoExpropriationExpropriation:GovernmentcompensateslandownerstobuildroadDeFactoExpropriationIndevelopingcountries,lawsareoverlappingandconflictingsoallbusinessesviolatesomelawsallthetimeGovernmentofficial’snephewcovetsabusiness,governmentbeginsenforcementcrackdownValueofbusinessplummetsOwnerofbusinesssellstonephewforcurrent,lowfairmarketvalueCrackdownends,marketvaluerecovers,nephewnowownsasuccessfulandvaluablebusinesspurchasedforafractionofthecurrentpriceWhichIstoBeMaster?WinnUKRegulatorySandbox2018TheunderlyingpremiseofaregulatorysandboxisthatitisinthepublicinteresttowaivecertainregulationsthatwouldotherwiseapplytoinnovatorsButFinTechsandboxesdonotoperatedouble-blindrandomizedcontroltests(theoriginalinspiration)CatoAFewThoughtsonRegulatorySandboxes2021ImpactofRegulatorySandboxesonFinTechPros&ConsofRegulatorySandboxvsWait-and-SeeRegulatorProRegulatorySandboxRegulatorandinnovatorcanengageinadirectdialogue,regulatorcanbetterunderstandinnovator’schallengeswithcomplianceInnovatorcanlearnaboutmarketcompetitioninawaynoconsumerswillbeharmedAgainstRegulatorySandboxRegulatorbecomestoofriendlywithinnovator,biasesregulatoryoversighttohelpinnovatorattheexpenseofothercompetitorsInnovatorsexposuretomarketconditionsisnotrealisticenoughtobehelpful,regulatorknowstoomuchaboutbusinessmodeltobefooledProWait-and-SeeRegulatorRegulatorandallregulatedentitlesareindirectdialogue,regulatorcanbetterunderstand