Financial fragmentation could slash world GDP by 6% and cost 280 million jobs by 2030, and it is on the rise.
A new report by Economist Impact, sponsored by Swift, examines the increasing segmentation of financial markets. Using economic modelling and expert insights, the report showcases forecasts of how fragmentation could unfold in 2030 and quantifies its potential impact on global and national outcomes, including GDP and employment.
To avoid a poorer and more divided world, the report calls for harmonised regulation, stronger international cooperation, and innovation in markets and financial systems. There is a role for everyone: policymakers must improve access to financial services to strengthen international co-operation; financial institutions should enhance risk management to mitigate geopolitical threats; international organisations can promote open markets and competition; and technology providers need to develop integrative solutions that enable financial institutions to become comprehensive hubs for their customers.
An integrated financial ecosystem is paramount to economic growth. The future landscape will see multiple models, networks, providers and technologies continue to proliferate and coexist as innovations develop, scale and consolidate. By fostering international collaboration, cooperation and interoperability, we can advance a resilient and interconnected global economy that benefits as many people as possible, while supporting innovators in advancing the financial system.
This roundtable aims to bring together key stakeholders, including industry experts, policymakers, academics, and practitioners, to explore critical issues, share insights, and foster collaboration on interoperability as it cuts across global payments, global trade, and securities. This initiative seeks to advance understanding, identify actionable strategies, and drive impactful outcomes in bringing the financial system together.
