Money and payments
4.2 New payment methods: opportunities and risks
One of the Bank of Finland's statutory tasks is to help maintain the reliability and efficiency of the financial and payment systems and to take part in their development. Changing payment methods highlight the importance of cyber security and necessitate financial literacy among the general public.
New digital technologies, payment methods, payment systems and service providers – such as smartphone applications for payments and instant payment systems – are changing the way people pay.
The new solutions may involve splitting payments into a broader set of services than before, merging them into another service or making them real-time. The changes highlight the importance of good financial literacy among the general public.
Payments Council brings together actors in the field of payment services
The Bank of Finland coordinates the Payments Council, which brings together associations representing the users and providers of payment services, the largest banks and the authorities in charge of payment services.
In 2018, the Payments Council published an e-booklet on financial literacy in the 2020s (Talouslukutaito 2020-luvulla, pdf) and established a task force on progress towards real-time payments in Finland. The twelfth Payments Forum, organised in May, also dealt with changes in the field of payments.
Preventive work against disruptions and cyber risks
The financial system must work reliably also in the event of serious disruptions. The Bank of Finland has actively participated in discussions on the development of national contingency measures.
Ensuring cyber security is an important element of the reliability of electronic payments. The Bank of Finland organised a Nordic conference on cyber security (bankoffinland.fi) in November 2018.
The Bank of Finland oversees securities settlement systems in cooperation with other authorities and market actors. In 2018, for instance, the Bank of Finland monitored closely the implementation and launch of a new settlement system operated by the Finnish Central Securities Depository.
The Bank of Finland is developing a payment and settlement system simulator. This software is used by the Eurosystem and several countries for assessing and monitoring the efficient functioning of payment and settlement systems and related risks and ideas for improvement.
In 2018, the Bank of Finland organised its 16th international seminar for experts in the field of analysis and simulation of payment and settlement systems.