Sarah Ombija (CCAF), Lindis Oma (CCAF), Philip Rowan (CCAF), Alexander Apostolides (CCAF), Nick Clark (CCAF), Sarah Corley (AllianceDFA), Camilla Ferguson (AllianceDFA), Bryan Zhang (CCAF), Yue Wu (CCAF), Jill Lagos Shemin (CCAF research affiliate), Ali Alghofiqi, Gabrielle Inzirillo (CCAF research affiliate), and Aarvi Singh.
This inaugural Global Fintech Industry Association Study provides valuable data and insights into the approaches and practices of the global community of Digital Financial Services (DFS)/fintech industry associations. The findings from this study aim to help industry associations, policymakers, regulators, market participants, and the development community better understand the work of industry associations.
Drawing from findings of an online survey of 65 industry associations in 48 jurisdictions, and in-depth interviews conducted with selected industry associations, the study discusses global approaches adopted by industry associations as well as lessons learned and good practices.
It can be used both as reference material and a tool to strengthen the operations of fintech industry associations, especially those which are nascent. For more established industry associations, this research provides new insights into benchmarking and surfaces commonalities and learnings across diverse fintech markets.
The research was conducted by the CCAF, working closely with the Alliance of Digital Finance and Fintech Associations (AllianceDFA), with the support of the Gates Foundation.
Highlights from the report
The main highlights from the report include:
1
Representation of fintech verticals/business models in industry associations
Digital payment providers and digital banks are significantly more prominent among industry association members in emerging market and developing economies (EMDEs) compared to advanced economies.
2
Primary objectives of industry associations
Advocacy, fostering collaboration and capacity building are the most prominent objectives for fintech industry associations.
3
Networking opportunities are a key benefit to industry associations members
Industry associations emphasise networking opportunities and partnerships as key benefits, in both EMDEs and advanced economies.
4
Industry associations typically have significant levels of engagement with regulatory authorities
About the same percentage of respondents in EMDE and advanced economies reporting having a highly collaborative relationship with regulators. In the case of moderate engagement, respondents from advanced economies more frequently cited this in comparison to those from EMDEs.
5
Industry associations typically engage closely with regulatory authorities
The majority of industry associations engage closely with regulatory authorities in their jurisdiction in order to advocate for fintech/digital financial services (DFS) related policy, legislative, and regulatory changes. However industry associations cite a lack of expertise and differing priorities among regulators as key challenges in this engagement.
6
Incumbent banks and financial institutions are key stakeholders that industry associations engage with
Engagement with incumbent banks and financial institutions is most often driven by the need to facilitate partnerships, engagement on DFS/fintech policy development, and to facilitate joint research and development.
7
Industry associations face several operational challenges
The leading operational challenges for industry associations relate to capacity and resource constraints and funding sustainability. The most common sources of income for industry associations are membership fees and revenue from events.
Good practice for industry associations
The report sets out 7 areas of recommended good practice for industry associations. These are interrelated and mutually reinforcing, with the evidence suggesting that successful industry associations have implemented a range of good practices across various areas as opposed to just focusing on one area.
Contributors and reviewers
We would like to thank the following contributors and reviewers:
- Tom Ward (CCAF)
- Hugo Coelho (CCAF)
- Ana Odorovic (CCAF)
- Philippa Martinelli (CCAF)
- Dee Allen (CCAF)
- Natalia Lima Fleichman