European Commission and supervisory authorities launch new fintech innovation forum

The European Commission (EC) and the European Supervisory Authorities (ESAs) have launched a new forum to foster fintech innovation in the common currency area.

Called the European Forum for Innovation Facilitators (EFIF), the forum aims to improve cooperation and coordination in support of the application of new technological developments in the EU financial sector. It will provide a platform for participating authorities to collaborate and share experiences from engagement with firms through innovation facilitators.

EFIF members will include the ESAs and National Competent Authorities. In addition, and on ad-hoc basis, representatives from third-countries' competent authorities will be invited to participate in the EFIF meetings.

In his keynote speech at the inaugural event of EFIF, Valdis Dombrovskis, Vice-President in charge of Financial Stability, Financial Services and Capital Markets Union, said:

“There are 21 innovation hubs and five regulatory sandboxes in the EU. By creating the European Forum for Innovation Facilitators, we aim to create a favourable environment for Fintech start-ups to scale-up and flourish in Europe. Innovation is a key component of the engine supporting the economic growth of the EU.”

Dombrovskis said that fintech is in its early days and there is plenty of unrealized potential for ground-breaking innovation.

“With the block chain and distributed ledgers, companies could drastically cut costs, reduce intermediaries, and increase safety for consumers. And more disruption is on the horizon, with cloud computing, Artificial Intelligence and machine learning,” he added.

The establishment of EFIF follows up on the 2019 ESA's joint report on regulatory sandboxes and innovation hubs and it is in line with the Commission's FinTech Action Plan. Dombrovskis said that the launch of the forum is “an important milestone for the EU to become a global Fintech hub.”

In addition to the fintech forum, the EC is also officially launching the International Association for Trusted Blockchain Applications (or INATBA) today in Brussels.