Bank of Lithuania will contribute to the development and strategy of the Global Financial Innovation Network (GFIN)
The Bank of Lithuania was admitted to the Coordination Group of the Global Financial Innovation Network (GFIN) which shapes the organisation’s strategy and directions.
“Having participated in the GFIN almost since its launch, we are valued for our work in developing innovations in the financial sector. Participation in the governance of the GFIN will provide us with a new opportunity to actively contribute to the analysis and forecasting of the developments of financial services at a global level. In cooperation with other regulators, we will share the best practices and, through regulatory, supervisory and data management technologies, we will seek to ensure that innovative and secure financial solutions, which are increasingly crossing borders, reach consumers,” says Marius Jurgilas, Member of the Board of the Bank of Lithuania.
The Bank of Lithuania joined the GFIN in early 2019. GFIN brings together more than 70 global financial market supervisory authorities from different jurisdictions. It is a global platform for sharing ideas and the latest knowledge about modern business models and products emerging in the market. It helps to explore various financial innovations by using modern reporting and supervision tools (RegTech, SupTech). GFIN is also used as a forum for responding to global challenges in the financial sector, such as the COVID pandemic, climate change or the extremely rapid development of new technologies. More information is available here.
During the two-year term, the new GFIN Coordination Group will review the general mission of the network and will explore further ways of cooperation between the network members in order to link initiatives across jurisdictions and to shape a global financial innovation market.
One of the main areas of GFIN activities is the global cross-border testing initiative, which brings together companies and regulators from all over the world to test innovative financial products, services, business models or regulatory technologies in a global regulatory sandbox. The cross-border initiative is the main area where the GFIN may generate the greatest added value for supervisory authorities, financial innovation companies and society. The ideas tested in the regulatory sandbox can be more easily adapted for the market and the risks they may pose are better understood by financial supervisory authorities, thus ensuring that only safe products enter the market.
Currently, the Bank of Lithuania, together with two other central banks of the GFIN and three financial market supervisory authorities, is assessing the solution proposed by the Polish company in the regulatory sandbox of the Bank of Lithuania. The objective of the test is to develop a sustainability reporting template that allows to monitor how financial market participants manage sustainability-related risks and to perform climate change-related data analysis. More information is available here.