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.
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Finnish financial sector has so far withstood the effects of the coronavirus pandemic well - operating environment remains uncertain, however
The Finnish financial sector has so far withstood the effects of the coronavirus pandemic reasonably well. The economic downturn and the coronavirus pandemic, however, are affecting different actors with different intensities and time spans. A number of public and private sector measures have sustained the real economy: the Financial Supervisory Authority’s macroprudential decisions are supporting the supply of credit, and the recommendation to refrain from profit distributions has strengthened financial sector actors’ risk-bearing capacity. The instalment-free periods granted by banks have eased the situation of households and businesses. Monetary and fiscal policy has also been expansionary.Press release
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FIN-FSA ordered supplementary amounts of conditional fine imposed on Danko Koncar payable
Press release
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Financial Supervisory Authority extends the validity of its profit distribution recommendation until 1 January 2021 and clarifies expectations related to capital and liquidity buffers
On 28 July 2020, the European Central Bank (ECB) issued a recommendation to the credit institutions under its supervision to refrain from distributing profits until 1 January 2021. The ECB recommendation calls on national supervisors to extend similar principles to cover the credit institutions under their own supervision. On 27 May 2020, the European Systemic Risk Board (ESRB) also issued a recommendation on the restriction of profit distributions until 1 January 2021.Press release
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FIN-FSA imposes penalty payment and public warning on Privanet Capital Markets Ltd for actions in the marketing and sales of Lapis Group shares and debt certificates
Press release
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Macroprudential decision: Residential mortgage loan cap to be relaxed, countercyclical capital buffer rate remains unchanged at 0.0 percent
The Board of the Financial Supervisory Authority (FIN-FSA) is restoring the loan cap for residential mortgage loans other than first-home loans to the standard level of 90%. This decision supports the proper functioning of the housing market in an economic environment altered by the coronavirus pandemic. The Board will not impose a countercyclical capital buffer (CCyB) requirement on banks and other credit institutions.Press release
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Telephone advice in statutory types of insurance
Supervision release
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Summary of sector-specific assessment of money laundering risk concerning payment service providers has been published
Supervision release
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Updated EBA Guidelines on legislative and non-legislative moratoria on loan repayments applied in the light of the COVID-19 crisis incorporated into FIN-FSA’s set of regulations and guidelines
Supervision release
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Amendments to regulations and guidelines on the organisation and code of conduct of investment fund activities and on alternative investment fund managers
Supervision release
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Questions and answers related to the submission and content of the preparedness plans
Supervision release