Vasiliauskas: Financial innovations have great potential – they only need to be utilised wisely
Financial innovations open up new opportunities for businesses and consumers, becoming an exciting impetus for economic growth both on national and international levels, noted Vitas Vasiliauskas, Chairman of the Board of the Bank of Lithuania, in his presentation at the Hamburg conference on the challenges of globalisation.
‘Financial technologies help integrate new businesses to the value chain – these are businesses for which traditional means of financing, such as bank loans, are often hardly accessible. This renders a vast, untapped, potential for economic development,’ said Mr Vasiliauskas.
According to him, by using financial technologies to provide access for residents and small businesses to new crediting sources, the entire financial sector would become more efficient, resilient to shocks and less dependant on banks. With growing competitiveness in the sector, consumers gain greater-quality services for a smaller price.
‘In order to reap all the benefits that financial innovations offer, we need only courage and support from the financial system regulator, walking hand in hand with new ideas. This could be a guidepost towards a system that is open to innovations, one that protects consumer interests and is built on the basis of stability,’ says Mr Vasiliauskas.
Promotion of innovations in the financial sector is one of the Bank of Lithuania’s strategic directions for 2017–2020. In implementing this goal, the country’s central bank began applying the one-stop shop principle for meetings and consultations with companies oriented towards financial innovations. In addition, institutions applying innovative payment means have access to the Bank of Lithuania’s payment infrastructure, thus cutting out the middle-man.
‘Living Without Globalization?’, a conference organised by the Hamburg Institute of International Economics and the Reinventing Bretton Woods Committee focuses on globalisation trends and challenges arising to the global economy, international trade and businesses, suggesting monetary and fiscal policy solutions and assessing prospects for the development of the international financial sector. The conference will host internationally renowned academics, high-ranking representatives from the public sector, international organisations and businesses.