Cross-border banking and payment services in the EU are being held back by a lack of regulatory clarity and harmonisation, says the European Banking Authority (EBA).
The rise of digital services should help established and newcomer providers reach more people, including across borders, says the EBA in a report developed under its Fintech Roadmap.
However, concludes the report, the promise is not being fully realised within the EU, in part due to divergences in regulatory requirements and supervisory practices across the Member States.
A major problem for firms is the lack of clear guidance on how to even classify cross-border activity under the freedom to provide services or right of establishment.
A second challenge stems from areas of EU law – such as consumer protection, conduct of business, and AML rules – that are not fully harmonised or are not yet covered.
The EBA is calling on the EC to further harmonise rules and to make it easier to identify cross-border services taking account of the digitisation of the FS industry.
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