European Banking Authority Discussion Paper on its Approach to Financial Technology
08/04/2017The European Banking Authority has published a discussion paper seeking views on its assessment of areas in which it could conduct further work in the innovative field of financial technology. The discussion paper considers the work on FinTech already carried out in the EU and internationally. In the EU, this includes work by the European Supervisory Authorities and the European Commission and Parliament and at SSM level the work of the European Central Bank in developing policy on the assessment of licensing applications for FinTech credit institutions. Internationally, work has been carried out by both the FSB and the Basel Committee on Banking Supervision in order to assess the developments, risks, opportunities and challenges of FinTech.
The discussion paper outlines the work carried out by the EBA in relation to FinTech, including the preliminary findings of a mapping exercise it carried out in May 2017 to gain a better insight into the financial services offered, and innovations applied, by FinTech firms in the EU, and their regulatory treatment. Based on the results of the mapping exercise, the EBA identifies a number of areas that merit further analysis.
The EBA proposes to look further at: (i) authorization and registration regimes and sandboxing/innovation hub approaches; (ii) prudential risks and opportunities for credit institutions, payment institutions, and electronic money institutions and the impact of FinTech on their business models; (iii) the impact of FinTech on the resolution of financial firms; (iv) the impact of FinTech on AML/CFT; and (v) consumer protection and retail conduct of business issues.
Comments on the discussion paper are invited by November 6, 2017 and must be submitted via an online response form available on the EBA website. The EBA will use the responses to consider further work in 2018.
View the Discussion Paper.TOPIC: FinTech