EBA SEES RAPID GROWTH IN THE USE OF DIGITAL PLATFORMS IN THE EU’S BANKING AND PAYMENTS SECTOR

The European Banking Authority (“EBA”) published a Report on the platformisation of the EU banking and payments sector on 24 September 2021. The EBA identifies a rapid growth in the use of digital platforms to ‘bridge’ customers and financial institutions, a trend expected to accelerate in line with the wider trend toward the digitisation of the EU financial sector.

This use of digital platforms presents a range of potential opportunities for both EU customers and financial institutions and offers significant transformative potential.

To address this important issue, the EBA sets out in the report steps to enhance supervisory capacity to monitor market developments. As a priority, in 2022 the EBA will help competent authorities to deepen their understanding of platform-based business models and the opportunities and risks arising by supporting competent authorities in:

• Developing common questionnaires for regulated financial institutions on digital platform and enabler use. This approach will facilitate tailored and proportionate information-gathering against a fast-evolving market;
• Sharing information about financial institutions’ reliance on digital platforms and enablers to facilitate coordinated EU-wide monitoring.

You can find full text of the Report here.

Kind regards,

Zumbul Attorneys-at-Law

info@zumbul.av.tr