Cecabank supported the '1st Financial Regulation Conference', organised by the Spanish Association of FinTech and InsurTech (AEFI), during which the FinTech 2.0 White Paper was presented
The Spanish Association of FinTech and InsurTech (AEFI) held its "1st Financial Regulation Conference" in Madrid, an event that aims to become the epicentre of the debate on the future of the FinTech sector in Spain, and which brought together representatives from both the public and private sectors. During the event, the FinTech 2.0 White Paper was officially presented, an update to the document published in 2017 that serves as a reference to guide the development of the FinTech ecosystem in Spain. This new edition incorporates the progress made, current challenges, and strategies necessary to maintain the sector as a driver of innovation and economic growth.
AEFI’s FinTech 2.0 White Paper advocates for constant dialogue between regulators, businesses, and entities to ensure that the regulatory framework governing the entire FinTech ecosystem is flexible and able to adapt to challenges. This document is sponsored by Cecabank in collaboration with Mastercard, who have significantly contributed to the drafting process, identifying key challenges in the sector and defining proposals aimed at strengthening the FinTech ecosystem in Spain.
In the document, AEFI proposes a series of urgent measures to improve the FinTech ecosystem in our country:
- Position Spain at the forefront of regulatory innovation within the EU by increasing regulatory effectiveness in the financial and related sectors, either by improving the efficiency of current resources or by expanding resources for regulators and supervisors, ensuring they have the necessary tools.
- A thorough review of all the national regulations that limit the activities of newly-created entities, particularly FinTechs, as well as the application of the principle of proportionality in their review. First, the association believes it is necessary to enshrine the use of technology and resource optimisation in law, and second, that the authorisations granted by the supervisor should not require the same demands.
- Simplification of the licensing and authorisation processes in a country where obtaining, modifying or expanding licences, or obtaining authorisations, lags far behind the leaders in the EU.
- Creation of a Twin-Peaks supervisory model, which entails separating prudential supervision from conduct supervision, allowing for more specialised oversight without risking innovation and competition, which ultimately ensures a strong financial system.
At one of the roundtable discussions on collaboration and cooperation in the industry, Juan José Gutiérrez, Corporate Director of Technological Services at Cecabank, explained that "collaboration is a fundamental element for creating value, maximised when ecosystems are created among different participants. Regulation ensures legal certainty to harmonise the sector, but poses a great challenge since its high implementation cost in Europe challenges the ability to adopt new business solutions".
Alberto López, VP of Cybersecurity at Mastercard, explained that "FinTechs have great growth potential, but they need our help to grow and internationalise. Although regulation can pose a barrier to innovation, it is necessary. The key is for all industry players to be more flexible by adapting internal processes to support these companies in their growth and development".
Regulation and oversight: keys to promoting the development of the FinTech sector
The presentation event was attended by key players from the FinTech sector, alongside representatives from public bodies such as the Ministry of Economy (Treasury), the Bank of Spain, and the National Securities Market Commission (CNMV), who emphasised the need for a balanced regulatory approach that is capable of fostering innovation and the development of the FinTech sector, while also ensuring consumer protection, the stability of the financial system, and transparency in all operations. The roundtable discussed the latest developments in the implementation of some regulations that are currently in the process of transposition, or that have been enacted in recent years.
FinTech as a driver of innovation and transformation in the financial system
AEFI's FinTech 2.0 White Paper concludes that the FinTech sector plays a crucial role as a driver of innovation and transformation in the financial system. As a result, one of the document's main recommendations is to strengthen regulatory innovation by streamlining the application and transposition of regulations set by the European Union, or by simplifying the processes for obtaining licences.
Arturo González Mac Dowell, president of AEFI, states that "the FinTech 2.0 White Paper is a fundamental tool for guiding the sector in a rapidly evolving regulatory environment. With this new update, we aim not only to strengthen financial innovation but also to ensure it is done responsibly, in a way that promotes security, transparency, and trust throughout the ecosystem".
