European Commission Consults on a New Digital Finance Strategy for the EU

The European Commission has launched a consultation on a new digital finance strategy and FinTech action plan for Europe. The Commission states that although it is prioritizing fighting the coronavirus pandemic, it has decided not to delay this work because the digital finance can help to tackle issues arising as a result of the coronavirus pandemic. The Commission's final strategy, due to be published in Q3 2020, will set out the focus FinTech policy areas for the next five years. The consultation closes on June 26, 2020.

In the consultation on a digital finance strategy, the Commission identifies and discusses three focus areas for policy action, which are:

1. Ensuring that the EU financial services regulatory framework is fit for the digital age. The Commission is seeking views on how to ensure that the EU financial services regulatory framework is technology neutral, innovation friendly and proportionate by allowing growth, but also ensuring consumer protection. Feedback is also sought on possible competition issues with BigTech companies.
2. Enabling consumers and firms to realise the opportunities offered by the EU-wide Single Market for digital financial services. The Commission requests feedback on how to address the identified obstacles to an EU single market for digital financial services.
3. Promoting a data-driven financial sector for the benefit of EU consumers and firms. The Commission invites responses to potential additional measures that might encourage the financial sector to gain the full benefits of the data economy without compromising the EU's data protection values and standards.

The consultation on a digital finance strategy does not consider the issue of enhancing the digital operational resilience of the EU financial system because the Commission's view is that this was covered sufficiently in its December 2019 consultation on the digital operational resilience of the EU financial sector and the establishment of an EU-wide framework to support existing measures on ICT security and risk management.

The Commission launched a consultation on retail payments strategy for the EU on the same day.

View the consultation paper on a new digital finance strategy/FinTech action plan.

View details of the consultation on a retail payments strategy for the EU.

View details of the Commission's consultation on digital operational resilience.

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