LONDON—Following in the footsteps of the European Commission’s Fintech Roadmap, the European Banking Authority (EBA) has released its opinion as to how to best foster and promote Fintech adoption.
The EBA’s Fintech Roadmap is the result of a recent consultation as to how the Authority should best embrace Fintech innovation. Andrea Enria, the EBA’s Chairperson, said the EBA’s Knowledge Hub will ensure that EU supervisors share best practices and adopt a technologically neutral approach to the application of new technologies in the financial sector. “This will help facilitate innovation and scalability across the single market,” he said in a report from Crowdfund Insider.
According to Crowdfund Insider, the EBA’s priorities for 2018 and 2019 are:
- Monitoring the regulatory perimeter, including assessing current authorization and licensing approaches to Fintech firms, and analyzing regulatory sandboxes and innovation hubs in order to identify a set of best practices to enhance consistency and facilitate supervisory coordination
- Monitoring emerging trends and analyzing the impact on incumbent institutions’ business models and the prudential risks and opportunities arising from the use of fintech
- Promoting best supervisory practices on assessing cybersecurity and promoting a common cyber threat testing framework
- Addressing consumer issues arising from fintech, in particular in the areas of unclear regulatory status of fintech firms and related disclosure to consumers, potential national barriers preventing fintech firms from scaling up services to consumers across the single market, and the appropriateness of the current regulatory framework for virtual currencies
- Identifying and assessing money laundering/terrorist financing risks associated with regulated fintech firms, technology providers and fintech solutions