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.

  • European Central Bank elaborated on its guidance on regulatory flexibility – FIN-FSA: All measures must be channelled to alleviating the impacts of the pandemic
    The European Central Bank announced today further information on measures to support the ability of banks under its direct supervision to respond to the coronavirus situation and to continue funding households and corporations. The ECB clarified its press release of 12 March on relief measures concerning certain additional capital and liquidity requirements.
    Press release
    financing European Central Bank coronavirus press release
  • Macroprudential decision: FIN-FSA Board lowers credit institutions’ capital requirements
    At its extraordinary meeting today, the Board of the Financial Supervisory Authority (FIN-FSA) decided to lower Finnish credit institutions’ capital requirements. The reduction is implemented by removing the systemic risk buffer and by adjusting credit institution-specific requirements so that the structural buffer requirements of all credit institutions will fall by 1 percentage point, all in all.
    Press release
    Capital requirement Systemic risk buffer Macroprudential decision O-SII G-SII/B
  • Financial sector solvency provides buffer to face economic problems caused by coronavirus
    In early 2020, the coronavirus pandemic has cast significant gloom over global economic prospects and increased uncertainty in financial markets. The Finnish financial sector at the end of 2019 was sound and therefore faces the altered situation from a good foundation.
    Press release
    Life insurance Non-life insurance Pension sector Solvency Banking sector Financial sector
  • Decision of the European Securities and Markets Authority: smaller short positions than before must be reported to national supervisors
    On 16 March 2020, the European Securities and Markets Authority (ESMA) decided to lower the reporting threshold for net short positions from 0.2% to 0.1% on a temporary basis. The ESMA decision will enter into force immediately upon its publication on the ESMA website. The decision will apply for three months from its date of entry into force. The decision has no impact on the publication threshold for net short position (0.5%).
    Press release
    coronavirus reporting short positions ESMA Press release
  • Financial Supervisory Authority enhances monitoring of financial sector
    In response to the corona virus pandemic, the outlook for the global and the Finnish economy has weakened considerably. The pandemic is also threatening to constrain companies’ access to funding in Finland. The Financial Supervisory Authority (FIN-FSA) is enhancing its monitoring of the financial sector and, in cooperation with European and Finnish authorities, has adopted measures to promote access to funding and the smooth functioning of the markets despite the pandemic.
    Press release