FinTech: EU Commission sees both opportunities and challenges
The EU Commission’s stance on the FinTech industry has been set out in its recently published consultation paper.
The Commission clearly sees the advantages FinTech can offer, highlighting greater access to financial services, choice, efficiency and a more competitive landscape. However, it also cautions that, in order to deliver these benefits, appropriate policies on issues such as access to technology, personal data protection and data management need to be put in place.
The Commission states that its stance on FinTech relies on three core principles:
- technological neutrality – the same activity must be subject to the same regulation no matter how the service is delivered;
- proportionality – this should reflect the size, systemic significance as well as the complexity and cross-border activity of the regulated entities; and
- market integrity - technology should promote more market transparency to the benefit of consumers and businesses without creating unwarranted risks such as market abuse.
The consultation goes on to explore the benefits and opportunities FinTech can provide while also monitoring the risks already identified. For example, the consultation asks what additional cybersecurity requirements might be required and how these should be tested.
The consultation closes on 15 June 2017. Responses must be made via an online questionnaire available here.