European Commission FinTech Task Force Seeks Public Consultation

The European Commission is hoping to consult with the public concerning the growing market of financial technology as the agency looks to manage policies in the sector.

Through its FinTech Task Force, the Commission last year said it will use public feedback to help guide its efforts to ensure the single market for financial services remains competitive, inclusive and efficient, Finextra reported.

“The goal is to create an enabling environment, where innovative FinTech products and solutions take off at a brisk pace all over the EU, while ensuring financial stability, financial integrity and safety for consumers, firms and investors alike,” the Commission stated.

According to the report, the commission is considering creating a regulatory framework for companies that operate within the financial services sector in Europe or enacting an EU-wide license for those companies. The commission may also develop a sandbox environment that can be used by the entire EU.

Until a final decision is made, market participants and EU citizens will have the opportunity to respond to an online questionnaire that addresses many aspects of the growing FinTech ecosystem.

Last year, the commission setup its financial technology task force in response to the effects of digital innovations changing the banking industry. The force connects with market participants and delves into financial regulation, competition and consumer protection issues.

As the task force is ultimately focused on constructing policies and other related recommendations, the commission said the industry landscape and impending transformations can affect both current and new financial institutions. And accordingly, it added, the challenge straddles creating the fundamental conditions to support innovation while engendering a future product to develop.

“Banks have a fundamental role to play in our society,” said EC vice president Valdis Dombrovskis said in a speech last November. “We depend on their lending for companies to invest, remain competitive and sell into bigger markets and so that households can plan ahead. In practice, this means the European Commission is focused on maintaining a regulatory framework that encourages a banking sector that is stable, sustainable, diverse and integrated.”