From the Single Supervisory Mechanism, the European Central Bank is continuously considering the “Fintech” with some suspicion, especially because of the risks that they may entail. For example, among the supervisory priorities for 2017 were included “the possible risks for the business models of credit institutions derived from the appearance of ‘Fintech’ financial technology and non-banking competition”.
The supervisory priorities of the Single Supervisory Mechanism of the European Central Bank for 2019 include “competition from non-banking entities”, an expression that, with some ambiguity, can refer, for example, to competition from “shadow banking”, but also from “Fintech”, although the supervision of electronic money institutions and payment institutions does not correspond to the European supervisor but to the national authorities.
Within supervisory priorities for 2020, there is no mention of “Fintech”, but there is a mention of cybercrime and technological deficiencies as some of the main risks for institutions.
Technological advances certainly provide a large number of advantages for those seeking financial services (ease of access, immediacy, ubiquity, continuity, speed, choice options, lower costs, convenience, link between non-financial and financial services…), although they also introduce new risks or amplify some existing ones (fraud, inappropriate sales, data leaks, cybercrime, unconscious taking of risks and overpurchasing of products by consumers, greater ease, in principle, for money laundering…).
