EBA欧洲银行-EBA-Discussion-Paper-on-Fintech-28EBA-DP-2017-0229_56页_891kb

EBA Discussion Paper on Financial Technology (FinTech)

Core Content

This Discussion Paper (DP) by the European Banking Authority (EBA) outlines its approach to financial technology (FinTech), which is defined as "technologically enabled financial innovation that could result in new business models, applications, processes or products with an associated material effect on financial markets and institutions and the provision of financial services." The paper aims to identify key areas where the EBA can further its work on FinTech, based on a mapping exercise and existing initiatives at EU and international levels.

Main Objectives and Scope

The EBA's objectives and scope of action are guided by Article 1(5) of its Founding Regulation, which requires it to:

• Enhance consumer protection
• Promote a sound, effective, and consistent level of regulation and supervision
• Ensure the integrity, transparency, efficiency, and orderly functioning of financial markets
• Prevent regulatory arbitrage and promote equal competition

The EBA's tasks include monitoring new and existing financial activities, providing guidelines and recommendations, and informing EU institutions such as the European Parliament, the Council, and the European Commission.

Key Areas of Focus

The DP identifies six key areas for further EBA work related to FinTech:

1. Authorisation and sandboxing regimes
2. Prudential risks for credit institutions, payment institutions, and electronic money institutions
3. Impact of FinTech on the business models of these institutions
4. Consumer protection and retail conduct of business issues
5. Impact of FinTech on the resolution of financial firms
6. Impact of FinTech on anti-money laundering (AML) and counter-financing of terrorism (CFT)

For each area, the DP outlines preliminary findings, current EBA work, potential gaps, and proposed next steps.

Mapping Exercise Results

In spring 2017, the EBA conducted a FinTech mapping exercise to better understand the financial services offered and the regulatory treatment of FinTech firms in the EU. This was the first such exercise at the EU level. The EBA received data from 22 EU Member States and 2 EEA States, covering a total of 282 FinTech firms. These firms were grouped into four clusters of financial services, as listed in Table 1:

• Cluster A: Credit, deposit, and capital raising services
• Cluster B: Payments, clearing, and settlement services
• Cluster C: Investment and asset management services
• Cluster D: Insurance and occupational pensions services

The mapping exercise aimed to gather:

• The total estimated number of FinTech firms and anticipated growth trends
• Information on a sample of at least five FinTech firms per financial service cluster
• Details on the main financial innovations used, the financial services provided, and the regulatory status of these firms
• Insights into the policy approaches used to facilitate FinTech development, such as regulatory sandboxes and innovation hubs

The results of this mapping exercise have informed the EBA's preliminary views and will be used to shape its future work.

Preliminary Views and Next Steps

The DP outlines the EBA's preliminary views on the potential impact of FinTech on the financial system and proposes further work to address emerging challenges. The EBA seeks input from external stakeholders on the scope of its proposed work, particularly through questions included in Chapter 4.

After the three-month consultation period (which ended on 6 November 2017), the EBA will assess the responses and decide on further steps for 2018. The EBA aims to ensure that its work remains aligned with the evolving FinTech landscape and continues to support the stability and effectiveness of the financial system.

Key Initiatives at EU and International Levels

EU Initiatives

• The European Commission has been reviewing crowdfunding developments and launched a Public Consultation on FinTech in March 2017. It also issued a Consumer Financial Services Action Plan to support innovation in retail financial services.
• The European Parliament adopted a report on FinTech in May 2017, calling for a cross-sectoral, holistic approach.
• The ESAs (EBA, ESMA, EIOPA) have conducted studies on automation in financial advice, DLT in securities markets, and robo-advice.
• The Single Supervisory Mechanism (SSM), under the ECB, has developed a policy on licensing applications for FinTech credit institutions.

International Initiatives

• The FSB and BCBS TFFT are actively monitoring FinTech developments and assessing risks, opportunities, and supervisory challenges.
• The FATF has published typologies and guidance notes on FinTech-related AML/CFT risks and is collaborating with FinTech and RegTech communities to explore opportunities for combating money laundering and terrorist financing.

Key Findings from the Mapping Exercise

• Over 1500 FinTech firms in the EU fall within the EBA's definition of FinTech.
• The mapping exercise provided sample data on 282 FinTech firms, which is not statistically representative but offers useful insights for policymakers.
• The EBA received information on regulatory approaches, including sandboxing and innovation hubs, used by jurisdictions to foster FinTech development.
• Some FinTech firms are regulated under EU or national laws, while others are not regulated and operate in a grey area.

Conclusion

The EBA's DP is a comprehensive review of the current FinTech landscape in the EU, based on mapping data and existing regulatory work. It highlights the need for ongoing analysis and policy development to address the risks and opportunities posed by FinTech. The EBA is seeking stakeholder input to inform its future work, which will focus on ensuring regulatory consistency, consumer protection, and the sound functioning of financial markets in the face of technological innovation.