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A new taskforce has been set up within the European Commission to help shape EU policies to support innovation in, and address the potential challenges of, financial technology.
The Commission announced that the taskforce will comprise staff with a range of different expertise, from those active in the areas of financial and digital services, digital innovation and security, competition and consumer protection.
EU commissioner for financial stability, financial services and capital markets union Valdis Dombrovskis, said: "We see technological innovation in finance as a development that we need to encourage and enable. It brings huge opportunities for consumers and for industry, both by established players and new fintech firms."
"Our taskforce will help us make sure that our policy supports the pursuit of these opportunities, while addressing any risks that may emerge. Efficient financial markets need to make the best possible use of the opportunities that technology presents, while also preserving competition and making sure that new operating systems are safe," Dombrovskis said.
The taskforce is expected to work with industry and other stakeholders and "present policy suggestions and recommendations in the first half of 2017", the Commission said. It said it intends to "develop a comprehensive strategy on fintech" and that the work of its new taskforce will build on that goal.
Günther Oettinger, the EU commissioner for digital economy and society, said: "Digital innovation is transforming the entire economy and in particular the financial services sector. It disrupts business models and value chains, leads to the emergence of new players and services. The digital single market strategy aims at laying down an appropriate framework and enabling solutions concerning for instance electronic authentication or cybersecurity. Our ambition is to foster financial innovation while preserving financial stability and protecting consumers and investors."
Fintech expert Luke Scanlon of Pinsent Masons, the law firm behind Out-Law.com, said: "While it is a welcome step forward for the European Commission to focus on fintech, it is hoped that part of this focus will result in more alignment of the various approaches units of the Commission – DG Connect, DG Justice and DG FISMA – take to topics that impact on digital, financial services and consumer rights."
"Alignment of the work of each of these bodies is essential if regulatory issues, that for some are delaying or holding back innovation, are to be addressed in a manner that is consistent and provides a way for businesses to have the ability and confidence to move forward with fintech innovation," he said.
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