The EBA's FinTech roadmap
In August 2017, the European Banking Authority (EBA) published a Discussion Paper on its approach to financial technology (FinTech) further to its statutory objective, which, among other things, requires the EBA to contribute to enhancing consumer protection, promoting a sound, effective and consistent level of regulation and supervision, preventing regulatory arbitrage and promoting equal competition, and its duty to monitor new and existing financial activities.
The FinTech Discussion Paper sets out the results of the EBA’s preliminary mapping of FinTech in the European Union (EU) and identifies proposals for further EBA work in the following policy areas: authorizations and regulatory sandbox regimes; prudential risks for credit institutions, payment institutions and electronic money institutions (referred to here as 'institutions'); the impact of FinTech on the business models of institutions; consumer protection and retail conduct of business issues; the impact of FinTech on the resolution of credit institutions and investment firms; and the impact of FinTech on anti-money laundering and countering the financing of terrorism (AML/CFT).
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Final report on Big Data
The responses received from stakeholders generally coincided with the content of the Discussion Paper, particularly with regards to the challenges and opportunities identified. Yet, the feedback received enabled to nuance some of the statements contained in the Discussion Paper and to better inform the ESAs assessment of the use of Big Data across the three sectors and its impact on the financial sector as a whole.
In this Final Report, the ESAs highlight the relevance of a number of existing requirements in the sectorial financial legislation as well as in other relevant areas (such as data protection, cyber security and consumer protection). The ESAs believe that the legislative requirements existing in these areas constitute an already quite solid framework to mitigate the risks identified in the context of this work. The ESAs also note that this framework will be further strengthened with the entry into application of several key pieces of legislation in the financial sector (e.g. IDD, MIFID II, PSD2) as well as in the data protection sector (notably, GDPR). The ESAs will monitor how and to which extent these additional requirements will contribute to mitigate further the risks identified in the context of this work.
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