The European Fintech Alliance (EFA) has accused the EC of failing to give startups a voice in a new expert group on regulating fintech innovation, instead packing the body with traditional financial institutions.
Last week the EC named 14 members of its new expert group on Regulatory Obstacles to Financial Innovation, which has been given the task of helping to create "an environment where innovative fintech products and solutions can be rapidly rolled out".
But, the EFA thinks that the makeup of the group will leave fintech startups out in the cold and benefit incumbents. Of the 14 members, five are individual experts and the rest are organisations: two universities, AXA, BBVA, Barclays, the German association of savings banks, ING, the LSE, and France Fintech.
With just one group member that directly represents fintech firms, the EFA fears that the regulatory concerns of small firms will not be heard.
Marcus Laube, chair, EFA, says: "It is incomprehensible why the Commission chose not to give a significant voice to fintechs in an advisory group that is supposed to define rules to foster financial innovation and Europe’s competitiveness in the financial sector.
"Not only can we expect the results to be biased towards the heavily overrepresented traditional institutions, but as well the Commission failed to involve all stakeholders concerned equally."