1. Systemic Risks Linked to the Digitalization of the Economy and Opening of Smart Bank Branches (international aspects)
MFA’s Diplomatic Academy
Boris B. Loginov
Ph.D. Professor of the Global Economy Department,
MFA’s Diplomatic Academy

2. Digitalization issues that pose ML/TF and predicate offences risks
a low level of readiness and harmonization of legal and technical tools in countries around the world
inadequate trust and practical cooperation between law enforcement agencies of different countries in combating cybercrime
a low level of financial digital literacy
sanctions-linked international standoff that draws actors who are not criminals into the system of risks, supervision and fight against ML/TF

3. Documentation requirements for account opening,% of 124 jurisdictions
Government-issued document
Any form of ID
Proof of nationality or legal status
Proof of address
Proof of income
Proof of employment
Other documentation
Source: 2017 Global Financial Inclusion & Consumer Protection (FICP) Survey, WBG. 124 jurisdictions participated in the survey

4. Smart bank branches – a new form of banking
10,000 bank branches have closed in the past 10 years in the U.S.,
on average 3 per day

5. Country-specific differences in promoting digital banking, % of customer base
Prefer branches or ATMs
(due to low trust in banks and financial system)
Favor branches or ATMs
(low-tech seniors)
Only basic products digitally
(for advice and complex products)
Digital channels for almost all banking
(for advice only)
Without bank visits
(fully remote banking)
Italy 48 14 5 10 25
Spain 43 16 7 13 22
U.S. 38 9 17 20
France 35 21
Germany 31 8 15 UK 19
Sweden 11 30 23
Netherlands 27 28
Source: A bank branch for the digital age. Global Banking. McKinsey. July 2018.

6. A digital bank branch includes:
Interactive digital walls
Digital queue
Self-service terminals
Virtual assistant
Attention-grabbing screens