Finalizing a 2017 paper pondering the future of fintech for global banks, the Basel Committee has concluded that innovations in this sector will make it increasingly difficult for them to maintain their current business model.  Basel has nonetheless demurred from conclusions that banks will be out-competed in the franchise-value struggle for retail-customer relationships. It also avoids specific regulatory proposals. In the consultation, Basel proposed a lot of policy recommendations, but these are now turned into “considerations” following lengthy and largely fact-based presentations of specific fintech implications.  Basel has also pulled back from specific recommendations in an earlier paper addressing fintech’s financial-inclusion impact.

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