Skopje, 9 December 2021 

As many as 90% of our companies and institutions are aware of the benefits that digitalization of financial services brings. Over 70% invest in digital transformation. Fintech is expanding rapidly in the payments industry which is seeking new ways to reduce costs, increase security and improve customer experience. Regulators are required to create a regulated environment for the development of new fintech products and services, while protecting consumers and maintaining financial system stability. This was stated at the beginning of the 13th Conference on Payments and Market Infrastructure, traditionally hosted by the National Bank.

This year's conference on Payments in the Digital Era: Inside Out is organized with the support of the De Nederlandsche Bank, the central bank of the  Netherlands. The Conference was opened by the National Bank Governor Anita Angelovska Bezhoska, the President of De Nederlandsche Bank Klaas Knot, and the Finance Minister Fatmir Besimi.

Governor Angelovska Bezhoska said that advancement in technology opens the doors to innovative digital services, but to unlock its true value for businesses and consumers, regulators have a role to play.

“The National Bank established an Innovation Hub aiming to facilitate, encourage and support innovation in financial services, including payment services. In this way we help new players better understand the existing regulation, and in turn they help us discover the potential regulatory gaps. Last year we conducted a survey to landscape the fintech development which showed that about 90% of all respondents are aware of the benefits that digitalization of financial services brings, about 70% invest in digital transformation, payment services in particular, while regulation and market size seem to be two main obstacles for fintech development. Regulatory barriers mainly refer to money laundering, data protection and payment system areas. The latter will be addressed with the new Law on Payment Services and Payment Systems that transposes the European Union directives and regulations in the payments area. We expect that the new regulatory framework and more broadly, the implementation of the Fintech Strategy will bring and make the new “inside out” for the Macedonian payment industry”, said Governor Angelovska Bezhoska.

In his speech, President  Knot discussed a few payment trends: the use of cash, the development of cryptos and stablecoins, and the use of big data and AI. For each of these, he highlighted both opportunities and risks.

“As central bankers and supervisors, we welcome any technological innovation that has the potential to make payments more convenient and accessible for everyone; the potential to contribute to our societies’ welfare; the potential to contribute to a trustworthy and stable financial system. But – there is a big sine qua non. For us, as supervisors and central bankers, trust goes hand in hand with rules, regulation and supervision. On the one hand, we need to give room to promising technological innovations, but on the other hand we need to keep the risks in check. With too much leeway for risks people might lose trust in the financial system. All the innovations I just discussed are not limited by traditional boundaries. To benefit from them while also effectively curbing their risks, we need both a national and an international approach. All the more reason for conferences like this to exchange views and experiences,” he said.

Finance Minister Fatmir Besimi said that with the liberalization of the market, the competition would increase, which will stimulate the banks and other financial institutions to be more active in the application of technological innovations in the financial sector. With the growth of new digital payment technologies developed by fintech companies, consumers and retailers will have a wide range of payment products, while fintech companies are expected to introduce new, innovative and easily accessible payment methods.

“In that direction is the new Law on Payment Services and Payment Systems, which will enable liberalization of the payment services market and the entry of non-banking institutions, such as payment institutions and electronic money institutions. These new payment service providers are primarily from the fintech sector, and are expected to spur the digital transformation of existing market participants“, said Minister Besimi.

The payments and market infrastructure conference will take place today and tomorrow when policy makers and experts will share opinions and discuss the latest trends and challenges posed by the new technologies to the payment services market, changes in the payment habits in the digital era, opportunities and challenges of open banking, fintech-based transformations, security in the digital space, as well as digital currencies issued by central banks.

The conference is international, attended by representatives of the European Central Bank and the EU national central banks, the US Federal Reserve, central banks of the region, the World Bank, the European Commission, foreign commercial banks, domestic regulators, domestic banking sector, as well as domestic and foreign non-banking institutions that are stakeholders in the field of payment services.