The European Banking Authority (EBA) published a Discussion Paper on its approach to financial technology (FinTech). The EBA sets out in the Discussion Paper the results of the first EU-wide FinTech mapping exercise and its proposals for future work on FinTech.
FinTech has the potential to transform the provision of financial services. For this reason, public authorities in the EU and beyond have started to investigate the impact FinTech is having on the financial system and its regulation and supervision.
The EBA has conducted already a significant amount of work in relation to certain types of financial innovations, such as crowdfunding and virtual currencies, but is stepping up its FinTech-related work to investigate the impact of FinTech on the financial system and its regulation and supervision.
To gain a better understanding of current FinTech activity in the EU, in spring 2017, the EBA launched the first EU-wide FinTech mapping exercise to which it received responses from 22 Member States and 2 EEA States.
The EBA received from the competent authorities information that suggests that there are over 1500 FinTech firms in the EU falling within the definition used by the EBA for the purposes of the FinTech survey. Detailed information was provided for 282 FinTech firms.
Based on the FinTech mapping exercise and existing EBA work, the EBA has identified proposals for future work in six areas: (i) authorisation and sandboxing regimes; (ii) the impact on prudential and operational risks for credit institutions, electronic money institutions and payment institutions; (iii) the impact of FinTech on the business models of these institutions; (iv) consumer protection and retail conduct of business issues; (v) the impact of FinTech on the resolution of financial firms; and (vi) the impact of FinTech on anti-money laundering and countering the financing of terrorism.
The EBA invites views from stakeholders on the scope of its proposed work.
Comments to this consultation can be sent to the EBA by clicking on the “send your comments” button on the consultation page. Please note that the deadline for the submission of comments is 06 November 2017. A public hearing will take place at the EBA premises on 4 October 2017 from 14:00 to 16:00 UK time. All contributions received will be published following the end of the consultation, unless requested otherwise.
For more details download the report: Discussion Paper on the EBA’s approach to financial technology (FinTech)