The European Commission has launched a Financial Technology Task Force designed to shape its response to the effects of digital innovations in the banking sector.
The Task Force brings together services responsible for financial regulation and for the Digital Single Market, along with experts in competition and consumer protection policy. It will be co-chaired by DG Fisma and DG Cconnect.
Digital technologies are changing the way we interact with friends and colleagues, access content and consume. All players of the financial services industry are indeed being disrupted, like in any other sector. Many financial services are already available online or on mobile apps. However, there is still substantial untapped disruption potential. It can affect the whole financial services ecosystem. More changes are on their way with the advent of new agile innovative players with new business models, user-friendly consumer interfaces, peer to peer services, or advanced automated tools.
The Commission says the unit will engage with market participants with the aim of formulating policy recommendations and measures “in the course of 2017”.
Pointing to the ongoing disruption in the industry engendered by new entrants and new technologies, the Commission states: “The current transformation affects existing financial institutions,as well as the new players, such as fintech startups or large internet platforms. The challenge is both to lay down the right conditions to support innovation and for a future-proof environment to emerge.”
Talking up the objectives of the new Task Force in a speech in Breugel, EC vice president Valdis Dombrovskis says: “It is clear that parts of our banking sector do not have the scale, or in some cases the expertise, to make the most of technological change. Digital payments and other innovations are developing rapidly. European banks will have to seize on digital innovations and work them into their business models.
The Commission is working to keep on top of digital transformation across all sectors. We want to foster innovation, give businesses the space to adapt and make the most of it. But we need to monitor changes closely to keep our existing rules fit for purpose.”
