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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Press releaseFinancial sector's capital position as at 30 September 2024: The solvency of the Finnish financial sector remained strong amid increasing geopolitical uncertainty The situation of Finland's economy is still gloomy, despite the early signs of positive developments witnessed recently. According to preliminary data, Finland’s GDP grew on the previous quarter. Overall, the economic outlook is still weak. The solvency of the Finnish financial sector has remained strong, despite the weakness of the economy. The banking sector's capital position is strong, despite the continued growth in credit risks. The employee pension sector’s solvency ratio strengthened further, and the solvency of the life and non-life insurance sectors remained solid.Press release FIN-FSA financial sector solvency
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Press releaseHelsinki Administrative Court issued its decision on appeal by Ermitage Partners Oy By a decision issued on 27 November 2024, the Helsinki Administrative Court rejected an appeal filed by Ermitage Partners Oy to repeal the FIN-FSA's decision prohibiting Ermitage Partners Oy from providing investment services without authorisation.helsinki administrative court decision ermitage partners oy
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Press releasePenalty payments to three companies for late notification of managers’ transaction The Financial Supervisory Authority (FIN-FSA) has imposed a penalty payment on Meriaura Invest Oy and Pokela Oy Iso Omena, and a joint penalty payment for several omissions on Myvision Oy. The companies have failed to notify, by the deadline, the issuer and the FIN-FSA of transactions made on their own account. A transaction notification must be made promptly and no later than three business days after the date of the transaction. The companies concerned are closely associated companies of persons discharging managerial responsibilities in issuers.FIN-FSA Press release penalty payment
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Press releaseDifferences in Finnish banks’ impairment staging of loans – Timely and adequate loan loss provisioning requires effective credit risk management An analysis by the Financial Supervisory Authority (FIN-FSA) has found differences and potential shortcomings in the way Finnish banks classify loans according to stages of impairment. The current environment of elevated risks highlights the importance of appropriate classifications and adequate and timely recognition of impairments. Excessively low and delayed loan loss provisioning may, if the risks materialise, lead to higher impairments and a weakening of banks’ capital adequacy.FIN-FSA Press release banks analysis credit risks
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Press releaseMacroprudential decision: Housing loan cap and countercyclical capital buffer requirement for banks remain unchangedLoan cap Countercyclical capital buffer Systemic risk buffer Denmark
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Supervision releaseEuropean Central Bank’s public consultation on the application of regulatory options and discretions available to authorities with respect to the prudential regulation of credit institutionsEuropean Central Bank public consultation credit institutions prudential regulation
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Supervision releaseAmendments to MAR as of 4 December 2024: safe harbour transactions in own shares and managers’ transactionsEU MAR managers' transactions safe harbour transactions in own shares regulation
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Supervision releaseEBA Guidelines (EBA/GL/2024/11) on information requirements in relation to transfers of funds and certain crypto-assets transfers under Regulation (EU) 2023/1113 (Travel rule Guidelines) – applicable from 30 December 2024EBA crypto-assets transfer of funds guidelines crypto-assets transfers
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Supervision releaseA summary of the risk assessment of money laundering and terrorist financing for virtual asset service providers has been publishedvirtual asset service providers risk assessment money laundering and terrorist financing crypto-assets
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Supervision releaseFATF invites comments on proposed revisions to FATF Recommendations – consultation period ends on 6 December 2024FATF standards request for comment