Policy Framework on the Regulation, Licensing and Supervision of Digital Banks

With the explosion of new players, services and business models driven by technological innovations, a new and specific type of digital financial services provider has emerged: the digital bank. Offering a more complete set of services than other fintech firms, digital banks replicate to a large degree the role played by traditional banks in the economy, providing a wide range of banking products and services, but relying on digital distribution channels.

This policy framework provides guidance contemplating strategies regarding digital banks, with a view of promoting financial inclusion. It provides insights in determining a relevant regulatory approach, implementing specific licensing regimes, and adapting relevant regulatory and supervisory benchmarks for the digital bank industry in their jurisdictions, as well as market conduct and consumer protection issues.