The European Banking Authority is stepping up its scrutiny of new fintech-related advances in financial services provision, promising to identity and close gaps in supervision.
Having already conducted investigations into crowdfunding and virtual currencies, the EBA is now training its focus across the broader fintech landscape.
A 'fintech mapping exercise' undertaken by the Authority in the Spring has identified proposals for future work in six areas:
- authorisation and sandboxing regimes;
- the impact on prudential and operational risks for credit institutions, electronic money institutions and payment institutions
- the impact of fintech on the business models of these institutions;
- consumer protection and retail conduct of business issues;
- the impact of fintech on the resolution of financial firms; and,
- the impact of fintech on anti-money laundering and countering the financing of terrorism.
The exercise has raised a number of discussion points around the harmonisation of rules across EU Member states and the prudential requirements needed to protect consumers and the safe-running of the financial systems, prompting the EBA to engage in a full consultation.
The deadline for the submission of comments is 06 November 2017.
A disucssion paper outlining the EBA's findings is available for download here