The European Commission has launched a fintech consultation, which aims to improve access to financial services, reduce regulation and improve efficiency in the EU, for both companies and consumers.

The public consultation on fintech is part of the Commission's drive to improve access and choice to consumer financial services. The action plan outlined by the Commission focuses on how technology can be developed and deployed to offer better online financial services across borders within the EU. Currently, only 7 per cent of consumers buy financial services from another EU country. One of the main ways to improve cross-border access to services is through reducing legal and regulatory obstacles, while also supporting the development of digital services.

The Commission's action plan includes three core approaches:

1. achieving a technology-neutral environment in which products sold digitally are subject to the same rules as traditionally-sold products and services (such as financial services sold via high street branches). This would ensure innovation and a level-playing field;
2. ensuring proportionality so that the rules are suitable for the different business models, sizes and activities of the regulated entities; and
3. improved integrity to ensure transparency, privacy and security for consumers.

The fintech consultation aims to gather first-hand information on the impact of new technology on the entire financial sector. It invites interested parties to respond through the Commission website by 15 June 2017 and will help to assess whether EU regulatory and supervisory rules are adequate and what future actions may be needed.

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CTMfile take: The consultation document provides background information and it's clear that this is aimed not just at consumers but at companies. It address issues including access to financial services, industry efficiency and costs, competition in the single market and the balance between data security and data transparency. All responses must be made through the online questionnaire.