The European Banking Authority (EBA) has recently released its opinion on the European Commission’s Fintech Roadmap.
Andrea Enria, the EBA’s Chairperson, said his agency will set up Knowledge Hub to make sure EU supervisors share best practices and adopt a technologically neutral approach to the application of new technologies in the financial sector.
Enria said in 2018 and 2019 EBA will prioritize the following: Identify identify a set of best practices to enhance consistency and facilitate supervisory coordination by monitoring the regulatory perimeter, including assessing current authorization and licensing approaches to Fintech firms.
EBA will also watch closely the fast rising new trends and analyze the impact on incumbent institutions’ business models and the prudential risks and opportunities arising from the use of Fintech.
The agency will also promote the best supervisory practices on accessing cyber security and promoting a common cyber threat testing frame-work.
Moreover the agency will also identify and assess money laundering/terrorist financing risks associated with regulated FinTech firms, technology providers and Fintech solutions.
The EBA believes on the huge importance of FinTech because it has the potential to enhance consumer choice and experience, reduce the costs of financial products and services, promote financial inclusion, drive efficiencies in the provision of financial services, facilitate cost reduction and support more effective compliance and reporting processes.
As an agency, the EBA wants to help in the development of FIntech innovation with a consistent and technologically neutral regulatory and supervisory approach allowing the scaling-up of financial innovations across the Single Market.
The EBA said it will issue publications spanning all priority policy areas identified in the Roadmap and will
continue to engage in EU and international FinTech initiatives.