In August 2017, the European Banking Authority (EBA) published a Discussion Paper on its approach to financial technology (‘FinTech’) [‘FinTech’ is defined at the EU and international standard-setting levels as ‘technologically enabled financial innovation that could result in new business models, applications, processes or products with an associated material effect on financial markets and institutions and the provision of financial services’.] further to its statutory objective, which, among other things, requires the EBA to contribute to enhancing consumer protection, promoting a sound, effective and consistent level of regulation and supervision, preventing regulatory arbitrage and promoting equal competition, and its duty to monitor new and existing financial activities [See the EBA Regulation].

The FinTech Discussion Paper sets out the results of the EBA’s preliminary mapping of FinTech in the European Union (‘EU’) and identifies proposals for further EBA work in the following policy areas: authorisations and regulatory sandbox regimes; prudential risks for credit institutions, payment institutions and electronic money institutions (referred to here as ‘institutions’ [The definition of ‘institution’ applies strictly for the purposes of this Roadmap. Reference is made to ‘incumbent’ and ‘new entrant’ institutions where appropriate.]); the impact of FinTech on the business models of institutions; consumer protection and retail conduct of business issues; the impact of FinTech on the resolution of credit institutions and investment firms; and the impact of FinTech on anti-money laundering and countering the financing of terrorism (‘AML’/‘CFT’).