A Report published by the European Banking Authority (EBA) today on the “platformisation” (use of digital platform-based business models) of the EU banking and payments sector:
- identifies the rapid growth in the use of digital platforms to connect customers and financial institutions;
- sets out steps to enhance supervisory capacity to monitor market developments.
Platformisation presents a range of significant transformative opportunities for both EU customers and financial institutions including, for example, the facilitation of access to both national and cross-border financial products and services. This gives rise to new forms of financial, operational, and reputational interdependencies over which supervisors have limited visibility.
As a priority in 2022, the EBA will help EU competent authorities to deepen their understanding of platform-based business models and their associated opportunities and risks by supporting them in:
- developing common questionnaires for regulated financial institutions on digital platform/enabler use to enable tailored and proportionate information-gathering against a fast-evolving market;
- sharing information about the resilience of financial institutions on digital platforms/enablers to facilitate coordinated EU-wide monitoring.
In addition, the EBA proposes to:
- continue its efforts on fostering the sharing of supervisory knowledge and experience of digital platforms/enablers on a sectoral and multi-disciplinary basis;
- enhance effective dialogue between authorities responsible for financial sector supervision, consumer protection, data protection and competition (e.g. via actions under the coordination of the EBA’s FinTech Knowledge Hub).