Experts gathered at the International Monetary Fund on Wednesday for a discussion titled “Big Tech and the Future of Finance.”
A panel of business, technology and thought leaders discussed opportunities and challenges of technology in finance.
Technology offers a way to even the playing field, according to David Marcus, the head of Calibra, Facebook’s digital wallet.
“Pre-internet we were in a world where we used to pay up to a dollar a minute for an international call and 15 or 20 cents a text message and suddenly with the internet we can now communicate for free with a $30 Android device. When you think about money it really hasn’t evolved the same way. And, the same person with the $30 Android device doesn’t have access to digital money at all. If anything, the poorer you are, the more you are paying for financial services,” said Marcus.
CNBC Technology Correspondent Elizabeth Schulze moderated the event.
“Do tech companies need to abide by the same rules banks abide by or should there be an entirely new set of rules here,” Schulze asked Bank of England Governor Mark Carney.
“That’s simple, the answer is yes. Same risks, same rules. One of the important things when we get into payments for example is, and what we’re realizing as regulators is that you need to look at the ecosystem as a whole. So, not just a narrowly defined slice of the payment system, because it is in many respects all interconnected,” Carney replied.
Nandan Nilekani, Co-Founder and Chairman of Infosys Technologies Limited, says tech payment systems must be compatible with each other.
“So I think payment is so fundamental to an economy that you need an interoperable payment system, which is very, very critical. The other point is cross-border, I’ll just spend a minute. Cross-border remittance is a huge challenge. Today, the world has $689 billion of cross-border remittance from 230 million migrants,” said Nilekani.