The European Banking Authority (EBA) presented a FinTech Knowledge Hub as part of its Roadmap to collaborate with new tech-led developments in financial services.
The Roadmap shows the EBA’s priorities for monitoring new tendencies, promoting best supervisory practices on assessing cybersecurity and promoting a common cyber threat testing framework, and identifying and assessing ML/TF risks associated with regulated FinTech firms, technology providers, and FinTech solutions.
The European Banking Authority wants to address consumer issues arising from FinTech development “in particular in the areas of unclear regulatory status of FinTech firms and related disclosure to consumers, potential national barriers preventing FinTech firms from scaling up services to consumers across the single market, and the appropriateness of the current regulatory framework for virtual currencies.”
As it says in a full report, “The EBA will map the authorization and licensing approaches and procedures
applied by competent authorities when authorizing firms adopting innovative FinTech business
models, in particular with a view to assessing how proportionality and flexibility are applied in
the context of existing EU and national law.
The EBA will also review any regulatory sandboxes or innovation hubs in the Member States with a view to developing best practices and, where appropriate, guidelines. It should not be treated the same as banks, which provide liquidity, debit and credit, but should find an optimal solution.