The European Commission named 14 members to its Regulatory Obstacles to Financial Innovation expert group last week. The body’s task is to create an environment for the rapid deployment of innovative fintech solutions and products.
The European Fintech Alliance’s (EFA) issue with the new group is the composition of its members, which they feel largely leaves fintech start-ups out of the picture and stands to benefit the group’s members. The group is comprised of two universities, ING, Banco Bilbao Vizcaya Argentina, Barclay’s, AXA, the London Stock Exchange, the German association of savings banks, France Fintech, and five individual experts.
By only having one organisation directly taking-up for fintech start-ups, the EFA is concerned that small fintechs’ regulatory anxieties will not be considered.
Chair of the EFA, Marcus Laube, calls the commission’s failure to include more fintechs “incomprehensible,” stating that, “Not only can we expect the results to be biased towards the heavily overrepresented traditional institutions, but as well the Commission failed to involve all stakeholders concerned equally.”
By Elliot Lyons, Research Analyst