Fintech as a Facilitator for the Capital Market Union?
15 Pages Posted: 29 Jul 2018
Date Written: March 8, 2018
FinTech is the word that has been receiving a lot of attention recently. This term originates from the merger of “finance” and “technology”. It represents an innovative and emerging field that affects the future of financial markets. Innovation in diverse formats and contents has been the driving force of any financial market. Yet, now the innovation seems to be more than a driving force, rather the key for survival. Modern financial regulation has been predominantly economically driven, progressing from addressing market failures to creating more efficient, competitive and reliable markets. The European Union has for number of decades been struggling with creating a true integrated single market for financial services. Investors, professional or retail, often lack trust in non-domestic or cross-border products, whereas institutions, unless sufficiently robust, remain active only in their known territories and the capital market remains cleft. This paper claims that with adequate regulation of FinTech in the European Union, the Union could finally bridge the divide.
Keywords: European Union, FinTech, Trust, Sandbox, Regulation
JEL Classification: K22
Suggested Citation: Suggested Citation