European Commission Sets Up Fintech Task Force to Address Banking Sector
- The task force has been created to support innovation and create a future-proof environment.
The European Commission has set up a Fintech Task Force in response to the effects of digital innovations in the banking sector.
The Task Force is co-chaired by DG FISMA and DG CONNECT and brings together services responsible for financial regulation and the digital single market, along with experts in competition and consumer protection policy.
The Fintech Revolution
Fintech is used to describe technology-enabled finance including Payments Payments One of the bases of mediums of exchange in the modern world, a payment constitutes the transfer of a legal currency or equivalent from one party in exchange for goods or services to another entity. The payments industry has become a fixture of modern commerce, though the players involved and means of exchange have dramatically shifted over time.In particular, a party making a payment is referred to as a payer, with the payee reflecting the individual or entity receiving the payment. Most commonl One of the bases of mediums of exchange in the modern world, a payment constitutes the transfer of a legal currency or equivalent from one party in exchange for goods or services to another entity. The payments industry has become a fixture of modern commerce, though the players involved and means of exchange have dramatically shifted over time.In particular, a party making a payment is referred to as a payer, with the payee reflecting the individual or entity receiving the payment. Most commonl , lending, raising capital and investment management, foreign exchange and money transfer, and robot advisers. It also includes regtech, its application to regulatory compliance.
According to a publication by the Commission, the fintech revolution has resulted from a confluence of technological developments that have come to the market ranging from the continuing increase in processing and storage capacity, cloud computing, social network and platform technologies, artificial intelligence, mobile technologies and distributed ledger technology or Blockchain Blockchain Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned.) In this sense, blockchain is immune to the manipulation of data making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tampe Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned.) In this sense, blockchain is immune to the manipulation of data making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tampe which is high on the agenda of the whole sector.
The Commission observed that "the current transformation affects existing financial institutions, as well as the new players, such as fintech startups or large internet platforms. The challenge is both to lay down the right conditions to support innovation and for a future-proof environment to emerge."
Recommendations
EC Vice President Valdis Dombrovskis commented: "It is clear that parts of our banking sector do not have the scale, or in some cases the expertise, to make the most of technological change. Digital payments and other innovations are developing rapidly. European banks will have to seize on digital innovations and work them into their business models.”
The Commission will engage with market participants regarding the formulation of policy recommendations and measures during the course 2017 to address these issues.
The European Commission has set up a Fintech Task Force in response to the effects of digital innovations in the banking sector.
The Task Force is co-chaired by DG FISMA and DG CONNECT and brings together services responsible for financial regulation and the digital single market, along with experts in competition and consumer protection policy.
The Fintech Revolution
Fintech is used to describe technology-enabled finance including Payments Payments One of the bases of mediums of exchange in the modern world, a payment constitutes the transfer of a legal currency or equivalent from one party in exchange for goods or services to another entity. The payments industry has become a fixture of modern commerce, though the players involved and means of exchange have dramatically shifted over time.In particular, a party making a payment is referred to as a payer, with the payee reflecting the individual or entity receiving the payment. Most commonl One of the bases of mediums of exchange in the modern world, a payment constitutes the transfer of a legal currency or equivalent from one party in exchange for goods or services to another entity. The payments industry has become a fixture of modern commerce, though the players involved and means of exchange have dramatically shifted over time.In particular, a party making a payment is referred to as a payer, with the payee reflecting the individual or entity receiving the payment. Most commonl , lending, raising capital and investment management, foreign exchange and money transfer, and robot advisers. It also includes regtech, its application to regulatory compliance.
According to a publication by the Commission, the fintech revolution has resulted from a confluence of technological developments that have come to the market ranging from the continuing increase in processing and storage capacity, cloud computing, social network and platform technologies, artificial intelligence, mobile technologies and distributed ledger technology or Blockchain Blockchain Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned.) In this sense, blockchain is immune to the manipulation of data making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tampe Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned.) In this sense, blockchain is immune to the manipulation of data making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tampe which is high on the agenda of the whole sector.
The Commission observed that "the current transformation affects existing financial institutions, as well as the new players, such as fintech startups or large internet platforms. The challenge is both to lay down the right conditions to support innovation and for a future-proof environment to emerge."
Recommendations
EC Vice President Valdis Dombrovskis commented: "It is clear that parts of our banking sector do not have the scale, or in some cases the expertise, to make the most of technological change. Digital payments and other innovations are developing rapidly. European banks will have to seize on digital innovations and work them into their business models.”
The Commission will engage with market participants regarding the formulation of policy recommendations and measures during the course 2017 to address these issues.