To gain a better insight into the financial services offered and financial innovations applied by fintech firms in the EU, and their regulatory treatment, in spring 2017 the European Banking Authority (EBA) undertook a fintech mapping exercise. Competent authorities in 22 member states and 2 EEA states provided estimates on the current number and expected growth of fintech firms established in their respective jurisdictions and detailed information on a sample of fintech firms, including information on main financial innovations applied, main financial services provided, regulatory status and target end-users.

The EBA has now published a discussion paper on the EBA’s approach to fintech. In its discussion paper, the EBA sets out the results of its EU-wide mapping exercise and its proposals for future work on fintech. Based on the mapping exercise, work done by other intergovernmental and EU bodies related to fintech and previous work that the EBA has conducted on specific innovations, the EBA believes that there is merit in it carrying out follow-up work in a number of areas, relating to:

• authorisation and sandbox regimes;
• prudential risks for credit institutions, payment institutions and electronic money institutions;
• the impact of fintech on the business models of these institutions;
• consumer protection and retail conduct of business issues;
• the impact of fintech on the resolution of financial firms; and
• the impact of fintech on anti-money laundering and countering the financing of terrorism.

For each of these six areas, the discussion paper identifies a number of issues, summarises the EBA’s work to date to address them, identifies possible gaps and outlines the additional work that the EBA may wish to pursue.

The deadline for comments of the discussion paper is 6 November 2017. The EBA will assess the responses with a view to deciding what further steps to take during 2018.

View EBA discussion paper on approach to Fintech, 4 August 2017