General Information & Client Service
  • Americas: +1.212.553.1653
  • Asia: +852.3551.3077
  • China: +86.10.6319.6580
  • EMEA: +44.20.7772.5454
  • Japan: +81.3.5408.4100
Media Relations
  • New York: +1.212.553.0376
  • London: +44.20.7772.5456
  • Hong Kong: +852.3758.1350
  • Tokyo: +813.5408.4110
  • Sydney: +61.2.9270.8141
  • Mexico City: +001.888.779.5833
  • Buenos Aires: +0800.666.3506
  • São Paulo: +0800.891.2518
February 27, 2018

Valdis Dombrovskis of EC, Yves Mersch of ECB, and Steven Maijoor of ESMA spoke at the Second Annual Conference on “Fintech and Digital Innovation: Regulation at the European level and beyond” in Brussels. They discussed the implications of innovations in financial technology and the work that is being done, and can be done, to meet the resulting challenges.

Valdis Dombrovskis, the EC Vice President, mentioned that EC plans to present its Fintech Action Plan next week. The Action Plan will set out a number of concrete steps for a more innovative and competitive EU financial sector. He highlighted that well-informed and skilled supervision of Fintech activities is a core theme of the Action Plan. This year, EC will establish an EU FinTech Lab, for supervisors to engage with technology solution providers. The aim is to raise the level of knowledge and understanding about new technologies. He added that EC supports efforts by ECB and supervisors to develop an EU-wide testing framework. Additionally, this year, EC plans to organize a public-private workshop to find and break down barriers that limit information-sharing among market participants on cyber threats. He also discussed in detail the three main goals of the Fintech Action Plan:

  • To support innovative business models to scale up across the single market

  • To encourage the uptake of new technologies in the financial sector. 

  • To increase cybersecurity and the integrity of the financial system

Yves Mersch, Member of the ECB Executive Board, emphasized that innovation and digitalization in payment services will significantly change the payments market. The legislative framework established by PSD2 supports such innovation and enhances competition. It offers a legislative basis for a level playing field between new entrant third-party providers (fintechs) and incumbent banks. Regulatory requirements for third-party providers and banks differ, along with the spectrum of services that they provide and the level of risk that they need to protect against. He said he would welcome it if both fintech third-party providers and banks were to make use of the opportunities granted by law and to compete for the most innovative and efficient provision of payment initiation services and account information services. They should build their services on common technical standards with a pan-European reach to benefit their customers and the European citizens while formulating appropriate cyber strategies to take care of the cyber risks that accompany digitalization.

Steven Maijoor, the ESMA Chair, during his keynote speech, addressed the key areas of fintech, with focus on examining the structural features of fintech, monitoring fintech by looking at economic function, and outlining the challenges and opportunities for regulators. He concluded that "we need to act in a balanced way, taking account of risks and benefits. Fintech is a fascinating topic, and it is reshaping the financial sector profoundly. We will use our measured approach to tackle the challenges fintech brings, and to grasp the opportunities."

 

Related Links

Keywords: Europe, EU, Banking, PMI, Fintech, PSD_2, Action Plan, ESMA, ECB, EC

Related Insights
News

BCBS Finalizes Market Risk Capital Framework and Work Program for 2019

BCBS published the final framework for market risk capital requirements and its work program for 2019. Also published was an explanatory note to provide a non-technical description of the overall market risk framework, the changes that have been incorporated into in this version of the framework and impact of the framework.

January 14, 2019 WebPage Regulatory News
News

EBA Single Rulebook Q&A: First Update for January 2019

EBA published answers to 13 questions under the Single Rulebook question and answer (Q&A) updates for this week.

January 11, 2019 WebPage Regulatory News
News

PRA Proposes to Amend Supervisory Statement on Credit Risk Mitigation

PRA published the consultation paper CP1/19 that is proposing changes to the supervisory statement (SS17/13) on credit risk mitigation.

January 10, 2019 WebPage Regulatory News
News

FASB Issues Q&A on Estimating Credit Loss Reserves

FASB issued a question-and-answer (Q&A) document that addresses particular issues related to the weighted average remaining maturity (WARM) method for estimating the allowance for credit losses.

January 10, 2019 WebPage Regulatory News
News

FED Updates Reporting and Supplemental Instructions for Form FR Y-9C

FED published the updated reporting instructions and supplemental instructions for the FR Y-9C reporting form. The reporting frequency for FR Y-9C is quarterly, as of the last calendar day of the quarter.

January 09, 2019 WebPage Regulatory News
News

ESMA RTS on Supervisory Cooperation Under Securitization Regulation

ESMA issued the final regulatory technical standards (RTS) for cooperation between competent authorities and ESAs under the Securitization Regulation (2017/2402).

January 08, 2019 WebPage Regulatory News
News

PRA Updates Policy on Liquidity Reporting Under FSA047/048 and PRA110

PRA published the policy statement PS1/19 that provides feedback to responses to the consultation paper CP22/18 titled "Liquidity reporting: FSA047 and FSA048" and the proposal in CP16/18, which intended to correct the level of consolidation of the PRA110 reporting requirements.

January 08, 2019 WebPage Regulatory News
News

FED Proposes to Amend Company-Run Stress Testing Requirements

FED proposed to modify company-run stress testing requirements to conform with the Economic Growth, Regulatory Relief, and Consumer Protection (EGRRCP) Act.

January 08, 2019 WebPage Regulatory News
News

OCC Revises Asset Thresholds for Small Banks and Savings Associations

OCC published in the Federal Register revisions to the Community Reinvestment Act (CRA) regulations that became effective January 01, 2019.

January 07, 2019 WebPage Regulatory News
News

ESAs Publish Joint Report on Regulatory Sandboxes and Innovation Hubs

ESAs published a joint report providing a comparative analysis of the innovation facilitators (that is, regulatory sandboxes and innovation hubs) established to date within the EU.

January 07, 2019 WebPage Regulatory News
RESULTS 1 - 10 OF 2453