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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Macroprudential decision: Housing loan cap and countercyclical capital buffer requirement for banks remain unchanged
Press release
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FIN-FSA’s assessment: some consumer lenders fail to manage default risks adequately, shortcomings also in contract terms
The Financial Supervisory Authority (FIN-FSA) has reviewed the management of default risks and conduct by parties granting consumer credit in Finland. Significant differences were identified among the market participants in the management of default risk: other lenders that were transferred under FIN-FSA supervision in July 2023 have significantly more shortcomings in their credit granting practices in comparison with banks. Furthermore, some of the other consumer lenders do not fully comply with legislation on consumer lending in their contract terms. The FIN-FSA will require these entities to remediate the shortcomings identified in the reviews.Press release
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Payment-related frauds and scams are a growing phenomenon – Financial Supervisory Authority investigation reveals scope for improving security of banking transactions
Various payment-related frauds and scams have been sharply increasing in recent years. The means used by criminals are also constantly evolving. According to an investigation by the Financial Supervisory Authority (FIN-FSA), there is scope for improving the security of banking transactions, for example by developing security restrictions on online banking and mobile payments and by more effectively monitoring and blocking fraudulent transactions. Users of services themselves also bear responsibility.Press release
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Strong year in financial sector despite uncertain operating environment – economic developments and geopolitical situation the most significant risks also in 2024
Despite the gloomier operating environment, the financial sector’s capital position remained strong in 2023. Despite the increase in credit risks in corporate and household loans, the Finnish banking sector's non-performing loans and loan losses were still among the lowest in Europe. In the insurance sector, too, solvency remained good, albeit weakening slightly. In the employee pension sector, the increase in the share of equity investments to nearly half of the investment allocation weakened stress resilience, which nevertheless remained reasonable. Economic developments and the geopolitical situation are still subject to significant risks and vulnerabilities, protection against which will be provided by the strong capital and liquidity position of the supervised entities as well as high-quality risk management and preparedness.Press release
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Penalty payment imposed on former board member of listed company for violation of prohibition on transactions
The Financial Supervisory Authority (FIN-FSA) has imposed a penalty payment of EUR 60,000 on former Tecnotree Oyj board member Markku Wilenius. He had conducted a transaction concerning the company's shares during the closed period of 30 calendar days before the announcement of the company's interim financial report.Press release
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European Securities and Markets Authority guidelines on the transfer of data between trade repositories - applicable from 29.4.2024
Supervision release
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Financial Supervisory Authority to conduct stress tests for insurance and pension sectors
Supervision release
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Thematic review: Room for development in the measurement of interest rate risk and management of interest rate risk models by credit institutions under direct FIN-FSA supervision
Supervision release
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Clear shortcomings in the management of default risk in consumer lending and in credit providers’ contractual terms
Supervision release
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Security of online banking, mobile banking and online payments
Supervision release