FinTech Action Plan: For a more competitive and innovative European financial sector

Summary:

Communication - adopted by the European Commission in March 2018 - setting out an Action Plan on how to harness the opportunities presented by technology-enabled innovation in financial services (FinTech).

Further information:

This Action Plan aims at enabling the financial sector to make use of the rapid advances in new technologies. At the same time, it seeks to make markets safer and easier to access for new players. It is part of the Commission's efforts to build a Capital Markets Union (CMU) and a single market for consumer financial services. It is also part of its drive to create a Digital Single Market (DSM). The Commission aims to make EU rules more future-oriented and aligned with the rapid advance of technological development.

To prepare the FinTech Action Plan, the Commission carried out a public consultation in March 2017 to gather stakeholders' views on the impact of new technologies on financial services. In responding to the public consultation, many respondents underlined that FinTech, and technological innovation in general, were drivers of financial sector development, with huge opportunities in terms of access to finance, operational efficiency, cost-saving and competition. The mid-term review of the CMU Action Plan of June 2017 stressed the potential of FinTech to transform capital markets by bringing new market players and more efficient solutions, increasing competition, and lowering costs for businesses and investors.

This Action Plan was published alongside a set of legislative proposals relating to FinTech and crowdfunding:

• Proposal for a Regulation on European Crowdfunding Service Providers (ECSP) for Business
• Proposal for a Directive amending Directive 2014/65/EU on markets in financial instruments

• Primary Source

Official

European Commission: Press Release, 08/03/2018: FinTech: Commission takes action for a more competitive and innovative financial market http://europa.eu/rapid/press-release_IP-18-1403_en.htm

European Commission: Fact Sheet, 08/03/2018: Frequently asked questions: Financial Technology (FinTech) Action Plan http://europa.eu/rapid/press-release_MEMO-18-1406_en.htm

European Commission: Opening remarks by Vice-President Dombrovskis on the Action Plans on Sustainable Finance, FinTech and a proposal for a Regulation on Crowdfunding, 8 March 2018 http://europa.eu/rapid/press-release_SPEECH-18-1701_en.htm

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