EBA is using its existing SREP framework to explore the regulation and supervision of fintech

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EBA is using its existing SREP framework to explore the regulation and supervision of fintech

How will the regulation of fintech affect the fintech development and the business model of the bank? Will fintech be overregulated ? What are the threats and opportunities created for the banking and the fintech sector?

The EBA has conducted already a significant amount of work in relation to certain types of financial innovations, such as crowdfunding and virtual currencies, but is stepping up its FinTech-related work to investigate the impact of FinTech on the financial system and its regulation and supervision.

To gain a better understanding of current FinTech activity in the EU, in spring 2017, the EBA launched the first EU-wide FinTech mapping exercise to which it received responses from 22 Member States and 2 EEA States.  Detailed information was provided for 282 FinTech firms.

Based on the FinTech mapping exercise and existing EBA work, the EBA has identified proposals for future work in six areas:

(i)             authorisation and sandboxing regimes;

(ii)            the impact on prudential and operational risks for credit institutions, electronic money institutions and payment institutions;

(iii)           the impact of FinTech on the business models of these institutions;

(iv)          consumer protection and retail conduct of business issues;

(v)           the impact of FinTech on the resolution of financial firms; and

(vi)          the impact of FinTech on anti-money laundering and countering the financing of terrorism.

EBA and ECB approach the Fintech industry, including both standalones and captives by banks, through the existing SREP framework

The Deloitte Fintech team  combines regulatory expertise with digital and fintech strategy to help banks navigate the transformation of the banking business model. Please ask our team for a strategy workshop to discover more

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