In response to the European Commission's consultation on financial technologies ('FinTech'), the European Banking Federation (EBF) on Wednesday 14 June called upon the Commission to create an inclusive ecosystem based around end-users and in which all players – from tiny start-ups to multinational banks – undertake to provide their clients with innovative financial services.
“If we as Europeans really want to play a role in FinTech globally, we need to create room for innovative financial services in a flourishing Digital Single Market”, said the chief executive officer of the EBF, Wim Mijs.
This consultation was launched on 23 March alongside the Commission's presentation of its action plan laying out areas of work to offer European consumers a broader choice and better access to financial services throughout the EU (see EUROPE 11752).
In its response, the EBF recommends a balanced approach in terms of supervision, based on the model “Same services. Same risks. Same rules. Same supervision”. It argues that this guarantees high standards of consumer protection, market integrity and financial stability under equitable conditions that promote fair competition and innovation.
This approach is also championed by the European Securities and Markets Authority (ESMA) which, in its response published on 7 June, stressed that FinTech start-ups should benefit from additional regulatory advice to allow them to adapt to the applicable legal framework.
The EBF also calls on the Commission to update the prudential requirements in place concerning banks' investments in software, recommending an approach similar to that of the United States, which recognises software investments as tangible assets that cannot be deducted from a bank's capital ratio.
On the basis of the responses to this consultation, which closed on 15 June, and of the recommendations of the specific working group set in place in November of last year (see EUROPE 11667), the Commission will have to assess whether the EU regulatory and prudential framework is appropriate and what actions may be necessary in future to make the European financial sector more competitive and innovative. (Original version in French by Marion Fontana)