FinTech Regulation and Its Impact on State-Owned Companies in Europe

Abstract

FinTech can be described as the innovative use of technology in the provision of financial services through digital technologies and IT systems. FinTech services’ evolution requires a degree of critical examination to avoid either an excessive degree of regulation, which could hamper new technologies, or too loose regulation that risks negatively affecting markets and consumers. In this context, particular attention should be paid to the impact of FinTech on State-owned enterprises (SOEs). The public nature of these companies risks being jeopardised if there is an uncontrolled and unsystematic use of FinTech services. This paper intends to look at the FinTech (r)evolution in Europe and to critically examine the challenges and risks connected with FinTech services when used by SOEs. While it would be excessive to argue for specific European rules on FinTech services for SOEs, the paper submits that the new FinTech regulatory dimension needs to be considered, especially in view of the increasing attention of EU regulators on the matter.