FinTech = Financial Technology, namely technology, notably information technology, that is used for the provision of banking, insurance, financial, investment or payment services. The term is also used to refer to growth companies that develop new financial technologies or new services based on financial technologies.

Examples of FinTech innovations and phenomena

  • robotic asset management
  • mobile wallets
  • customer service chatbots
  • crypto assets, such as Bitcoin, Litecoin and Ethereum
  • peer-to-peer lending and peer-to-peer insurance
  • smart contracts.

What is the FIN-FSA’s role in digitalisation and FinTech issues?

Digitalisation is transforming the structures and operating practices of society, and the financial sector is no exception. Increasing competition, regulatory reform and changing customer needs and expectations are encouraging financial companies to develop services and products based on new technologies for their customers. The FIN-FSA keeps track of technological advances and trends in the financial sector, accommodating its supervisory activities to reflect the development of the sector. The FIN-FSA is also the authorisation authority for financial companies. New service providers, such as FinTech start-up companies, apply for authorisation or registration with the FIN-FSA, as required. The FIN-FSA welcomes innovation but, in its role as an authority, it also needs to identify the risks inherent in innovation.

  • Financial sector's capital position as at 31 March 2021: Finnish financial sector's capital position remained good
    The Finnish financial sector's capital position remained good in the first quarter of 2021. The outlook for the Finnish economy is bolstered by the rapid progress in COVID-19 vaccinations and improvements in business and household confidence. Risks related to the pandemic and economic developments are, nevertheless, still heightened.
    Press release
    Financial sector FIN-FSA Press release Solvency
  • Tero Kurenmaa to head Legal Unit at the FIN-FSA
    Press release
    appointment FIN-FSA Press release
  • Room for development remains in UCITS liquidity management
    The Financial Supervisory Authority (FIN-FSA) considers that there remains room for improvement in procedures related to UCITS liquidity management. Management companies are responsible for ensuring an adequate level of liquidity risk management for UCITS, both in normal and extraordinary market conditions. The purpose of liquidity management is to ensure that the fund is able to pay, at a predetermined date, redemption orders made by investors to the fund. Finnish UCITS, however, did not experience significant shortcomings in their liquidity during the market conditions caused by the coronavirus pandemic in spring 2020.
    Press release
    FIN-FSA investment funds thematic review UCITS
  • Macroprudential decision: FIN-FSA will not tighten macroprudential requirements but will closely monitor mortgage lending
    The Financial Supervisory Authority (FIN-FSA) is closely monitoring the housing market and household indebtedness and urges banks to take particular care when assessing borrowers’ ability to pay, especially in the case of large and long-term loans. For now, the maximum loan-to-collateral (LTC) ratio, i.e. the loan cap, and banks’ capital requirements will remain unchanged.
    Press release
    Countercyclical capital buffer FIN-FSA Loan cap Macroprudential decision Press release
  • Finnish financial sector remained stable in 2020 - Risks in the operating environment mean continued uncertainty in the sector
    The Finnish financial sector coped well in 2020. In 2021, preparedness will still be required due to the uncertainty surrounding the economic outlook, pricing on the financial markets and the continuation of support measures. The capital position of the Finnish financial sector, however, provides a good basis for coping with risks.
    Press release
    Banking sector Financial sector FIN-FSA Life insurance Non-life insurance Pension sector Press release Solvency