Consultation on Impact of Digitalisation and Financial Innovation on Deposit Insurance Systems

The consultation closes on 16 March 2026. 

Background

The International Association of Deposit Insurers (IADI) has identified the impact of digitalisation and financial innovation on deposit insurance systems as a critical priority. Technologies such as tokenisation, artificial intelligence, and cloud computing are transforming financial services, creating opportunities to enhance efficiency and financial inclusion. However, these advancements also pose risks to financial stability, challenge existing deposit insurance frameworks, and introduce new risks that insurers must address.

The rise of digital deposit-taking institutions and fintech platforms accepting public funds raises questions about coverage under current frameworks. The rapid pace of innovation often outstrips regulatory adaptation, highlighting the need for deposit insurers to review their mandates, update risk assessment practices, and potentially expand their scope.

This report explores three key areas: innovative deposit-related products (eg tokenised deposits, stablecoins), the actors providing these services, and the technologies driving change. While the findings are not conclusive, they aim to lay the groundwork for further dialogue and adaptation to the evolving financial landscape.

Consultation

The consultation questions in the report are designed to explore the challenges and opportunities posed by financial innovation and digitalisation for deposit insurance systems. They address key themes such as:

• The coverage and protection of emerging digital financial products like e-money, stablecoins, tokenised deposits, and central bank digital currencies (CBDCs), including their implications for depositor protection and financial stability.
• The role of new market entrants, such as fintech firms and non-insured deposit-taking institutions, in reshaping the financial landscape and their impact on deposit insurers’ ability to meet public policy objectives.
• The effects of technological advancements, including automation, artificial intelligence, cloud computing, and social media, on the operational resilience of deposit insurers and their ability to respond to risks effectively.
• The evolving behaviour of depositors in a digital environment, including increased competition for deposits, heightened deposit volatility, and expectations for instant access to funds.
• The potential impact of CBDCs on traditional deposit-taking activities, financial stability, and depositor protection, as well as their use in expediting depositor reimbursements and addressing risks related to wallet service providers.

These questions aim to foster dialogue and provide a foundation for deposit insurers to adapt their frameworks, enhance operational capacity, and collaborate with other financial safety net participants to address the implications of digitalisation and financial innovation.

How to Participate

Please submit your comments via email to consultation@iadi.org in PDF format. The deadline for submissions is 16 March 2026. 

Unless explicitly requested to remain confidential, comments from external respondents (non-IADI members) will be published on IADI’s website after the consultation period closes.