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Introductory Brief (Part II): Opportunities for Deposit Insurers (DepTech)

Author

Listed:
  • Edward Garnett

    (Federal Deposit Insurance Corporation)

  • Rachel Youssef

    (Federal Deposit Insurance Corporation)

  • Daniel Hoople

    (Federal Deposit Insurance Corporation)

Abstract

The International Association of Deposit Insurers (IADI) recently launched a research series that explores innovations in financial technology (fintech) and how these innovations affect deposit insurance systems. The Financial Stability Board has defined fintech as 'technologically enabled financial innovation that could result in new business models, applications, processes or products with an associated material effect on financial markets and institutions and the provision of financial services.' (Financial Stability Board, 2019b). While the growth in consumer use of fintech presents challenges to deposit insurers by blurring the lines between financial products and services offered within and outside the traditional financial system, fintech also provides many opportunities for deposit insurers by creating business efficiencies, quality products, and new frameworks for solving problems, among other improvements. This brief introduces the term 'DepTech', or Deposit Insurer Technology, and defines it as the adoption of new technologies to improve deposit insurer operations. This can include enhanced reporting procedures, improvements to the reimbursement process, and faster depositor access to funds when a bank fails. This brief investigates the opportunities fintech presents to deposit insurers and in doing so, focusses on data standardisation, digital payments, artificial intelligence and machine learning, cloud computing and new media.

Suggested Citation

  • Edward Garnett & Rachel Youssef & Daniel Hoople, 2022. "Introductory Brief (Part II): Opportunities for Deposit Insurers (DepTech)," IADI Fintech Briefs 8, International Association of Deposit Insurers.
    • Handle: RePEc:awl:finbri:8
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    File URL: https://www.iadi.org/en/assets/File/Papers/Fintech%20Briefs/IADI%20Fintech%20Brief%208%20final.pdf
    File Function: Final version
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    References listed on IDEAS

    as
    1. Tobias Adrian & Tommaso Mancini-Griffoli, 2021. "The Rise of Digital Money," Annual Review of Financial Economics, Annual Reviews, vol. 13(1), pages 57-77, November.
    2. Defina, Ryan, 2021. "Machine Learning Methods: Potential for Deposit Insurance," MPRA Paper 110712, University Library of Munich, Germany.
    3. Jon Frost, 2020. "The economic forces driving FinTech adoption across countries," Working Papers 663, DNB.
    Full references (including those not matched with items on IDEAS)

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    Cited by:

    1. Bert Van Roosebeke & Ryan Defina, 2023. "Deposit Insurance in 2023: Global Trends and Key Issues," IADI Research Papers 23-02, International Association of Deposit Insurers.

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    More about this item

    Keywords

    deposit insurance; bank resolution;

    JEL classification:

    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • G33 - Financial Economics - - Corporate Finance and Governance - - - Bankruptcy; Liquidation

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