Banks and fintechs welcome European Commission’s Fintech Action Plan
- Digitisation hugely important for financial markets
- Pan-European solutions indispensable
“With the action plan it unveiled today, the European Commission has acknowledged the importance of digitisation for the financial markets,” said Andreas Krautscheid, chief executive of the Association of German Banks. It was right to opt mainly for recommendations and guidelines instead of initiating new legislation. With better products and better service in mind, the action plan took into account the chances and potential of new technologies, while at the same time addressing risks appropriately.
A good example of this approach was the intensive discussion of blockchain and cryptocurrencies that was now being taken up by the Commission as well. Legitimate concerns about, for example, the protection of consumers shouldn’t obscure the fact that the underlying technical progress constituted a new stage in the evolution of digitisation.
“We are also talking about many other issues with our fintech members that need to be discussed more fully on the European stage. These include improvements in the EU-wide recognition of national “know your customer” requirements or in the standards for the use and management of data, along with questions relating to closer European alignment of outsourcing rules,” Mr Krautscheid stressed.
Digitisation knew no geographical borders, although it repeatedly encountered these within the EU, Mr Krautscheid said. With its action plan, the Commission was therefore rightly placing importance on pan-European solutions for issues such as licensing, standardisation, as well as fostering and sharing innovation.
Against this backdrop, Mr Krautscheid at the same time welcomed the proposal to introduce a pan-European label for crowdfunding platforms. This included the passport option that would allow a platform to operate across the EU.