EBA publishes FinTech discussion paper
Written by Chris Lemmon
The European Banking Authority (EBA) has published a discussion paper on its approach to FinTech and the results of the first EU-wide FinTech mapping exercise.
The report states that FinTech has the potential to transform the provision of financial services, and that public authorities in the EU and beyond have started to investigate the impact FinTech is having on the financial system.
The EBA has already conducted 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 two European Economic Area states.
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.