Wencai Zhang, the Managing Director and Chief Administrative Officer of the World Bank Group, addressed the 2024 Wuzhen Summit at the Annual World Internet Conference. In his speech titled "Embracing New Technological Challenges and Opportunities, and Building a New Financial Ecosystem," Zhang discussed the transformative impact of technologies such as fintech, blockchain, artificial intelligence, and digital currencies on the financial ecosystem.
Zhang highlighted China's significant progress in adopting these technologies, noting that by 2021 approximately 89% of adults in China had access to a transaction account and around 85% engaged in digital payments. He emphasized that while technological advancements offer opportunities, they also pose challenges for developing regions where digital and financial inclusion remain limited.
"Our goal at the World Bank Group is to support countries in harnessing these innovative technologies while managing associated risks," Zhang stated. He outlined three focus areas: digital financial inclusion, building trust in digital finance, and accelerating digital transformation.
On digital financial inclusion, Zhang pointed out that globally 1.4 billion adults still lack access to basic financial services. He identified four fundamental steps to bridge this gap: providing government-issued identity cards preferably as digital identities; enabling bank account access; ensuring accounts are usable for daily activities through digital public infrastructure; and using transaction histories for credit access.
Building trust in digital finance was another priority mentioned by Zhang. "Trust is foundational to any financial ecosystem," he said. The World Bank Group collaborates with central banks worldwide to develop regulatory frameworks focusing on data protection, cybersecurity, and privacy.
Zhang also addressed accelerating digital transformation as a means of promoting economic growth and poverty reduction. He noted the importance of governments in developing infrastructure like Digital ID systems to facilitate citizen access to services.
The World Bank Group supports over 60 countries with digital identity initiatives and assists more than 40 countries with fast payment systems. Interoperability across borders is seen as crucial for improving cross-border payments.
Zhang concluded by emphasizing partnerships between public and private sectors to ensure fintech innovations reach underserved communities. In Pakistan, for instance, training programs have positioned platforms for hundreds of firms. Additionally, efforts are being made to empower SMEs through tailored lending products developed with local banks and fintech startups.
Emerging technologies such as blockchain and AI were acknowledged for their potential role in shaping finance's future. However, Zhang warned of associated risks including cyber threats and regulatory challenges which must be managed carefully.
"We are dedicated to building a financial ecosystem that works for everyone," he affirmed at the end of his remarks.