FinTech refers to the technological innovation in the field of financial services that allows the development of new business models, applications, processes or products with direct effect on the provision of financial services using information technologies and innovative communications.
More and more institutions in the financial market regard innovation as one of the main ways to gain a competitive advantage. Consumers are responding positively to digitalisation in its broadest sense and increasingly want to use innovative financial services through remote electronic channels, mainly through the internet and mobile devices.
Many companies operating in the field of technological innovation in the financial sector (FinTech) encounter obstacles during the business development process, such as complicated legal and regulatory requirements or the complexity of their application in relation to innovative financial products or services.
In order to be able to overcome these challenges, ASF launched FinTech Hub, within which one created the institutional framework for dialogue with companies developing FinTech, supporting thus the development of modern technologies on the financial market, while maintaining the confidence and level of protection appropriate to the clients.
Therefore, FinTech Hub lays the foundation for developing an effective communication and collaboration method, through which both the authority and the regulated entities and / or other companies interested in better understanding the opportunities and risks generated by FinTech so that the optimal solutions are transposed into practice more easily, after testing and validation by stakeholders.
FinTech solutions bring along new risks that the Authority, as its regulator and supervisor, must have the ability to understand and be prepared to manage properly. At the same time, FinTech also means new opportunities for consumers, entities and the Authority. Therefore, it is important for all parties involved to focus on the opportunities and benefits generated by innovations, but also on the risks that may arise and their prevention or mitigation solutions.
The European Union pays particular attention to the development of FinTech. In this regard, the European Commission adopted in March 2018 the FinTech Action Plan, designed to promote competitiveness and innovation in the European financial sector. The action plan mentions key goals that create opportunities for developing innovative business models across the EU, supporting the integration of new technologies such as blockchain / DLT, artificial intelligence (AI) and cloud services into the financial sector, the cyber security enhancing and the integrity financial system.