meps call for acceleration of eu fintech development

Economic and monetary affairs committee MEPs want the EU to accelerate the development of financial services enabled by new technologies (FinTech). Their key priorities are:

Cybersecurity and data protection: the need for end-to-end security across the whole financial services value chain and to create more awareness among the consumers regarding the value of their personal data. A caution regarding the increasing combination of personal data and algorithms such as robo-advice, which might be both beneficial and detrimental to clients.

Level playing field: to ease the access for new entrants and prevent regulatory arbitrage among the member states. Future legislation should be based on: same rules regardless of the type of entity (a traditional bank, an innovative startup or a tech-giant), technology neutrality and risk-based approach.

Interoperability and passporting: importance of interoperability of FinTech services within the EU and through engagement with third countries, interoperability of traditional and new payment solutions and national eidentification schemes. Passporting regimes should be offered to providers of new financial services across the EU.

Room for controlled innovation and fostering financial education and IT skills: controlled experimentation with new technologies and stress-testing tools for FinTech applications. National regulators and supervisors should develop technological know-how and skills also financial and digital literacy among the customers are crucial factors for the efficient use of FinTech and for lower level of risks.