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
    Macroprudential decision: No changes to macroprudential instruments – both the housing loan cap and countercyclical capital buffer requirement for banks to remain unchanged
    Loan cap Countercyclical capital buffer
  • Press release
    Penalty payments to three natural persons for late notification deadlines of managers’ transaction

    The Financial Supervisory Authority (FIN-FSA) has imposed a penalty payment on Ari Lehtoranta, Michael Piccirillo and a person closely associated with a person discharging managerial responsibilities. These persons have failed to notify, by the deadline, the issuer and the FIN-FSA of transactions made on their own account. A transaction notification must be made promptly and no later than three business days after the date of the transaction. The delays are related to Lehtoranta’s position as a person discharging managerial responsibilities at Orion Corporation and Piccirillo’s position as a person discharging managerial responsibilities at Bioretec Ltd.

     

    Press release FIN-FSA penalty payment
  • Press release
    Financial sector's capital position as at 30 September 2024: The solvency of the Finnish financial sector remained strong amid increasing geopolitical uncertainty The situation of Finland's economy is still gloomy, despite the early signs of positive developments witnessed recently. According to preliminary data, Finland’s GDP grew on the previous quarter. Overall, the economic outlook is still weak. The solvency of the Finnish financial sector has remained strong, despite the weakness of the economy. The banking sector's capital position is strong, despite the continued growth in credit risks. The employee pension sector’s solvency ratio strengthened further, and the solvency of the life and non-life insurance sectors remained solid.
    Press release FIN-FSA financial sector solvency
  • Press release
    Helsinki Administrative Court issued its decision on appeal by Ermitage Partners Oy By a decision issued on 27 November 2024, the Helsinki Administrative Court rejected an appeal filed by Ermitage Partners Oy to repeal the FIN-FSA's decision prohibiting Ermitage Partners Oy from providing investment services without authorisation.
    helsinki administrative court decision ermitage partners oy
  • Press release
    Penalty payments to three companies for late notification of managers’ transaction The Financial Supervisory Authority (FIN-FSA) has imposed a penalty payment on Meriaura Invest Oy and Pokela Oy Iso Omena, and a joint penalty payment for several omissions on Myvision Oy. The companies have failed to notify, by the deadline, the issuer and the FIN-FSA of transactions made on their own account. A transaction notification must be made promptly and no later than three business days after the date of the transaction. The companies concerned are closely associated companies of persons discharging managerial responsibilities in issuers.
    FIN-FSA Press release penalty payment