FinTech – Financial sector innovations

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.

  • Press release
    FIN-FSA warns of rising investment scams The number of investment scams and their attempts has increased significantly in the last year, both in Finland and internationally. The FIN-FSA urges investors to be careful, particularly if they are approached with unsolicited investment offers or tips. The use of social media in investment scams has risen significantly.
    press release fin-fsa investment scams
  • Press release
    Financial sector has withstood well the challenges of a volatile operating environment – special attention must be paid to preventing fraud Despite the difficulties, there is optimism in the Finnish economy: business confidence has improved and consumer activity in the housing market has increased. In the first half of the year, the capital position of the banking sector remained strong. The solvency of the pension and insurance sectors is also strong. The domestic fund sector recovered from the volatile market conditions of the spring, and in June fund capital had returned to nearly its record level of the early part of the year. The situation of open-end real estate funds remained difficult, however. Financial sector participants have withstood well the challenges of a volatile operating environment, but the sector must pay special attention to preventing fraud.
    press release fin-fsa financial sector capital position
  • Press release
    European and domestic stress tests completed: banks’ resilience good also against changes in the operating environment resulting from geopolitical tensions The European Banking Authority (EBA) has published the results of its EU-wide stress test exercise, and the Financial Supervisory Authority (FIN-FSA) has published the results of the banks that are subject to its direct supervision. The results show that the Finnish banking sector would withstand a significant weakening of the operating environment. At the start of the stress test horizon, the banks’ profit performance was historically strong, which eased the stress compared to the previous exercises. The adverse scenario of the stress test exercise was particularly relevant because it took into consideration the tightening of trade policies brought about by the tariffs imposed by the United States.
    fin-fsa press release eba ecb banks stress tests
  • Press release
    FIN-FSA thematic review: financial sector organisations use AI in internal processes, utilisation in the customer interface increases The majority of financial sector companies reported either already using or planning to start using artificial intelligence (AI) solutions. Most of the AI solutions are currently used in the entities’ internal processes, but application in the customer interface is going to increase over the following years.
    press release financial sector fin-fsa
  • Press release
    Macroprudential decision: National buffer requirements for banks and the housing loan cap to remain unchanged
    Loan cap Countercyclical Capital Buffer Requirement O-SII Systemic Risk Buffer Norway