The European Commission is aiming to push a ‘capital markets union’ and believes that fintech could play an important role.
The Commission has been highlighting the important role that technology can play as a driver of competition, and for bringing capital markets closer to companies and investors.
Although there has been rapid development in fintech and it could play this bonding role, the Commission has warned: “the rapid development of fintech poses new challenges in managing risk and ensuring consumers have adequate information and safeguards,” said a communication from the Commission.
The communication was directed to; the European Parliament, the Council, the European Central Bank, the European Economic and Social Committee and the Committee of the Regions.
Currently there is a veritable smorgasbord of regulations regarding finance and fintech across Europe and the world. Each individual country has taken its own approach with varying success. The UK’s regulators the Financial Conduct Authority and the Competition and Markets Authority, have both been widely praised by UK fintechs.
This positive role has helped to see the UK position itself as one of the world leaders when it comes to fintech, according to reports from Robert Half Technologies.
While nation states take their own approach, the EC is planning to promote fintech while striking, “an appropriate balance between building confidence in companies and investors, protecting consumers and providing the fintech industry the space to develop.”
Essentially what this means is that it will work with member states, the European Central Bank, and the European Supervisory Authorities, with the hope that a coordinated approach can be developed
On the whole the EC, and the other authorities, will be aiming to work towards a system that promotes fintech, but also the stability of existing financial bodies. The dream is for there to be competition which breeds the best services at competitive prices for customers.
The communication can be read here.
