Fintech in Selected BRICS Countries: Similar Policy Imperatives?

Abstract

Fintech has undergone accelerated evolution in the global tech sector, affecting how economies conduct their modes of business. The paper on which this chapter is based aimed to conduct a cross-country analysis of fintech development in three BRICS countries (China, India and South Africa), to interrogate whether these countries share similar policy imperatives and overall direction. Methodologically the paper was guided by the concept of the regulatory state, and utilised secondary resources to provide insights into the diverse experiences and debates on fintech policy development in these BRICS nations. The findings were that the impact and direction of fintech policies in BRICS countries remain understudied and highly debatable. China and India, with the two largest populations in the world, have the highest levels of fintech consumption globally, and play a leading role in informing policy direction through effective but contested regulations. The practical policy implications suggest the need for BRICS countries to develop a balanced approach that prioritises regulations to minimise financial instability, as markets are unable to self-regulate. However, there is no policy consensus on how BRICS countries should manage fintech policy; and this may pose challenges, as intra-BRICS trade and investment deepen and expand to other economies in Africa and the Middle East.