The digital economy and innovations in the financial sector Olga Skorobogatova Deputy Governor, Bank of Russia

Framework for development of financial technologies in Russia Economic challenges Trends of the financial market Financial market participants modify their business models and aim at development of financial services ecosystems Necessary development and growth of non-material industries Banks give up their monopoly position in financial services Creation of favorable conditions for development of digital economy Banks look toward partnerships with startups and technology companies Development of competitive financial market Growth of the number of accelerators and volume of venture capital investments in fintech startups Financial institutions 62% 72% account for digital transformation in their business strategy expect the increase of the number of partnerships with Fintech companies in 3–5 years

Key technologies in financial sector Big Data and data analytics Mobile technologies Artificial intelligence Cybersecurity Robotics process automation Biometrics and identity management Distributed ledger technologies Public cloud infrastructure * * The most relevant technologies according to the results of the survey of the Heads of financial institutions and fintech companies Source: PwC: Global FinTech Survey 2017

Основные драйверы развития инновационного финансового рынка Demand for innovative financial technologies and products Human resources of new standard Human capital Финансовые продукты и услуги Demand Competitive financial products and services Technologies Access to funding Government regulation Innovative and disruptive technologies Creation of favorable regulatory environment Access to financial resources for innovative projects Source: research of EY for the roadmap of ASI/STI FinNet

Growth of popularity of fintech services in Russia Consumer expectations FinTech Adoption Index Ease of account opening 24-hour access to services 39% 22% 14% Access to a variety of products and services № Country Level of FinTech аdoption 1 China 69% 2 India 52% 3 Russia 43% 4 Great Britain 42% 5 Brazil 40% 6 Australia 37% 7 Spain 8 Mexico 36% 9 Germany 35% 10 South Africa Dynamics of fintech services development Number of remote payments increased 1.6 times in 2016 in compared to 2015 and 1.8 times compared to 2014 Number of mobile payments increased by 90% in 2016 with the total volume of 84.1 million transactions Mobile apps of Russian banks 1.5-2 times exceed European banks in terms of functionality Creation of conditions for the development of the digital economy Achieving leading positions of Russia Sources: Bank of Russia, EY, McKinsey