Aware of the fragmentation of retail financial services, the members of the European Parliament’s economic and monetary affairs committee believe it is possible to take action at European level to promote the portability of certain products.
The MEPs call on the Commission "to study further the feasibility, relevance, benefits and costs of removing existing barriers towards the cross-border provision of financial services, thus guaranteeing domestic and cross-border portability in various parts of the retail financial services market; for example, as regards personal pension and insurance products", in a draft own-initiative report by Olle Ludvigsson (S&D, Sweden) on a Commission green paper on retail financial products (see EUROPE 11450). In the rapporteur’s circles, it is pointed out that portability could also apply to the credit card market.
The draft report does not call for large-scale legislation. Alain Cadec (EPP, France) said it was important not to rush in. He added that much EU legislation has been introduced recently in the retail financial services domain and that it is important to ensure it is properly implemented in the member states. The new legislation includes a new directive on payment services that still needs to be fully transposed (see EUROPE 11433).
MEPs do not want to hold back the growth of FinTech companies thriving with the digitisation of financial data: "Digitalisation provides great opportunities for more efficient and consumer friendly financial services, if prudently managed. It is high time that the European Parliament recognises now the chances of the FinTech revolution!", said Sven Giegold (Greens/EFA, Germany) in a press release. A European Parliament source says that a framework is needed in this domain which encourages innovative enterprise while keeping fair play rules for traditional players such as banks.
Giegold welcomed the fact that MEPs are calling on the European Commission to submit a special action plan on sustainable finance and investment as part of the initiative to introduce a Capital Markets Union (see EUROPE 11624).
Only 3% of consumers buy bank products (credit cards, current accounts and mortgages) in a different member state from their own, and fewer than 1% of loans are cross-border, so the MEPs recommend simplifying products and greater transparency to encourage their comparability, particularly by the creation of ad hoc websites.
The draft report will be adopted by the European Parliament plenary in November. (Original version in French by Mathieu Bion)