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.

  • Subdued economic outlook is weakening the financial sector's operating environment – real estate market risks particularly increasing
    Subdued economic growth and the uncertain economic outlook have kept the risks in the Finnish financial sector high in the first half of the year. Risks are increasing particularly in the real estate market. The financial sector's strong capital position provides protection against risks caused by the weakening operating environment.
    Press release
    Press release FIN-FSA capital position solvency financial sector
  • Public warning to Pohjola Insurance Ltd for non-compliance with time limits under Workers’ Compensation Act and provisions concerning system of governance
    The Financial Supervisory Authority (FIN-FSA) has issued a public warning to Pohjola Insurance Ltd. The company has failed to commence the processing of claims, issue decisions and submit statutorily required documents to the appropriate appeal body within the time limits provided in the Workers’ Compensation Act. Furthermore, the company has lacked adequate internal control for claims function and reporting as well as information systems concerning claims function producing adequately reliable information.
    Press release
    public warning workers’ compensation act pohjola insurance ltd
  • IMF published a report on anti-money laundering in Nordic and Baltic countries – supervision could be enhanced by increasing cross-border information exchange
    At the request of the Nordic and Baltic countries, the International Monetary Fund (IMF) has analysed threats and vulnerabilities stemming from money laundering and terrorist financing in their region. The IMF proposes development of the national risk assessment and the supervisors’ risk assessment primarily by enhancing the analysis of cross-border payments. Furthermore, various sources of information could be used more effectively than presently in the identification of countries involving a high risk of money laundering.
    Press release
    FIN-FSA Press release imf anti-money laundering
  • Results of Finnish banks’ stress tests – banks’ resilience good, but a significant weakening of the operating environment would erode buffers
    The European Banking Authority (EBA) has published the results of its EU-wide stress test exercise, and the Financial Supervisory Authority has tested the resilience of banks that are subject to its direct supervision. The results of the stress tests show that the Finnish banking sector would withstand a significant weakening of the operating environment, but banks’ buffers are however limited. The stress tests' adverse scenario was exceptionally severe this time.
    Press release
    FIN-FSA Press release eba ecb banks stress tests
  • It is important for banks to ensure the availability of personal customer service and reasonably priced basic banking services
    The right of customers to obtain basic banking services as set out in law is mainly fulfilled well in Finland. The Financial Supervisory Authority (FIN-FSA) considers that, last year, basic banking services were readily available and, for the most part, reasonably priced, but the service offering is focused on banks’ digital services. While digital services are the main channel for the majority of customers in managing their daily banking matters, banks also need to safeguard the availability of personal customer service and the opportunity for customers who do not use digital services to access reasonably priced services.
    Press release
    FIN-FSA Press release banking services basic banking services survey