Approach to financial technology (Fintech)

Status: Under development

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.

EBA publishes its Roadmap on FinTech

EBA publishes its Roadmap on FinTech

15 March 2018

The European Banking Authority (EBA) published today a FinTech Roadmap setting out its priorities for 2018/2019. The Roadmap also sets out the establishment of a FinTech Knowledge Hub to enhance knowledge sharing and foster technological neutrality in regulatory and supervisory approaches.
 
Taking account of the feedback to the EBA's 2017 Discussion Paper on FinTech, and the new mandates for the EBA set out in the European Commission's FinTech Action Plan, the EBA's FinTech Roadmap describes its priorities for 2018/2019 and provides an indicative timeline for the completion of these tasks.
 
The priorities are:
  • monitoring the regulatory perimeter, including assessing current authorisation and licencing approaches to FinTech firms, and analysing regulatory sandboxes and innovation hubs in order to identify a set of best practices to enhance consistency and facilitate supervisory coordination;
     
  • monitoring emerging trends and analysing the impact on incumbent institutions' business models and the prudential risks and opportunities arising from the use of FinTech,
     
  • promoting best supervisory practices on assessing cybersecurity and promoting a common cyber threat testing framework;
     
  • addressing consumer issues arising from FinTech, in particular in the areas of unclear regulatory status of FinTech firms and related disclosure to consumers,  potential national barriers preventing FinTech firms from scaling up services to consumers across the single market, and the appropriateness of the current regulatory framework for virtual currencies;
     
  • identifying and assessing money laundering/terrorist financing risks associated with regulated FinTech firms, technology providers and FinTech solutions. 
 
In all of this work, the EBA will leverage knowledge and expertise in the EBA's new FinTech Knowledge Hub. Andrea Enria, the EBA's Chairperson, welcomed the developments stating, "The EBA's Knowledge Hub will ensure that EU supervisors share best practices and adopt a technologically neutral approach to the application of new technologies in the financial sector. This will help facilitate innovation and scalability across the single market."
 
In addition, the EBA will continue to engage in relevant international initiatives to promote supervisory and regulatory consistency in responding to new and borderless technologies. 

Legal basis 

Article 9(2) of the EBA's Founding Regulation imposes a duty on the EBA to monitor new and existing financial activities. This obligation extends to all areas of the EBA's competence, including in the field of activities of credit institutions, financial conglomerates, investment firms, payment institutions, and electronic money institutions. In this context, the EBA has published the FinTech Roadmap.
 

Press contacts:

Franca Rosa Congiu

E-mail: press@eba.europa.eu - Tel: +44 (0) 207 382 1772

EBA publishes a Discussion Paper on its approach to FinTech

EBA publishes a Discussion Paper on its approach to FinTech

04 August 2017

The European Banking Authority (EBA) published today 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.  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.

Consultation process

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.

Legal basis

The EBA Founding Regulation mandates the EBA to act in the field of activities of credit institutions, financial conglomerates, investment firms, payment institutions, and electronic money institutions. 
 
The EBA is tasked with monitoring new and existing financial activities, and market developments in the areas of its competence, and may adopt guidelines and recommendations or provide advice to the European Parliament, the Council and the Commission, with a view to promoting the safety and soundness of markets and convergence of regulatory and supervisory practices and to achieving a coordinated approach to the regulatory and supervisory treatment of new or innovative financial activities.
 
In this context, the EBA has published the Discussion Paper with a view to seeking views on its proposed future work in relation to FinTech.

Press contacts:

Franca Rosa Congiu

E-mail: press@eba.europa.eu - Tel: +44 (0) 207 382 1772