Past Event

Fintech and the digital transformation of banking

FinTech is changing the financial sector. What are the challenges associated with this and what policies should we adopt in response?

Date: June 20, 2017, 12:00 pm Topic: Finance & Financial Regulation

Video and audio recording


SUMMARY

Xavier Corman, CEO & Co-Founder of Ebedex, opened the event in describing the difficult situation that FinTechs are facing when operating in Europe. Various languages, several currencies, and especially different interpretations of the same European regulation hinder the expansion and impose costs. European FinTechs are structurally disadvantages compared to foreign competitors and thus often stay national. He demanded an adapted regulation that does not treat FinTechs and banks equally (principal of proportionality) and gives FinTechs a possibility to try out new technologies and business models (sandboxing). More harmonization of rules across Europe is needed as well as a more equal technical infrastructure, financial and technological education, and more funding has to be made available for FinTechs. In order to stay competitive, Europe has to digitalize its citizens, governments, and companies.

Ezequiel Szafir, CEO of the digital bank of Grupo Santander, requested a regulation based on the risk of the activity with an application of proportionally and sandboxing in a later step. Any mistrust between banks and FinTechs can be attributed to incomplete regulation as well as to improper cybersecurity measures by FinTechs. Investments of banks into FinTechs should be facilitated by allowing banks to ring-fence FinTechs activities. First of all, future regulation has to digitalize banks by enabling them “to go in the cloud”. With legacy IT systems still operating in its banks, Europe will not be able to maintain its competitive position.

Pēteris Zilgalvis, DG CONNECT at the European Commission, points out that the European Commission plans to make Europe the number one area for FinTechs. As examples of already taken action, Zilgalvis mentions the Blockchain initiative and cloud initiative by the European Commission. FinTechs will be supported by future regulation, but their cyber-security remains an important issue. The regulator will continue with a technology-neutral approach.

Cora van Nieuwenhuizen, MEP, stresses the “need for speed” as Europe begins to fall behind in technologies such as big data, artificial intelligence (AI), and machine learning. She points out that these technologies are without alternative but provide many new opportunities such as lower costs, higher speeds, and extended choice. As the rest of the world is already investing heavily, Europe has to keep up and change preconditions quickly to compete with the best talents. Europe has already lost the “war on software” (mayor software companies are non-European), but it may lose the “war on AI” as well if no changes will take place. Two old legacies, IT systems of banks and the financial crisis, are hindering an optimal development and have to be overcome.

Event notes by Alexander Roth.

EVENT NOTES

Presentation by Xavier Corman

Schedule

Jun 20, 2017

12:00-12:30

Check-in and lunch

12:30-13.30

Panel discussion

Chair: Georgios Petropoulos, Research Fellow

Xavier Corman, CEO & Co-Founder, Ebedex

Ezequiel Szafir, CEO of the digital bank of Grupo Santander

Pēteris Zilgalvis, Head of Unit for Startups and Innovation in the Digital Single Market Directorate, European Commission, DG CONNECT

Cora van Nieuwenhuizen, Member of the European Parliament

13.30-14.00

Q&A

14.00

End

Speakers

Xavier Corman

CEO & Co-Founder, Ebedex

Cora van Nieuwenhuizen

Member of the European Parliament

Georgios Petropoulos

Research Fellow

Ezequiel Szafir

CEO of the digital bank of Grupo Santander

Pēteris Zilgalvis

Head of Unit for Startups and Innovation in the Digital Single Market Directorate, European Commission, DG CONNECT

Location & Contact

Bruegel, Rue de la Charité 33, 1210 Brussels

Matilda Sevon

matilda.sevon@bruegel.org

Read about event

Upcoming Event

Jan
24
12:30

Corporate taxation in the digital era

How can we address digital taxation in the EU? Is the proposed "equalisation tax" on turnover the best policy to tackle the challeges posed by digital taxation?

Speakers: Johannes Becker, Dmitri Jegorov, Maria Demertzis, Stephen Quest and Stef van Weeghel Topic: European Macroeconomics & Governance, Innovation & Competition Policy Location: Bruegel, Rue de la Charité 33, 1210 Brussels
Read about event More on this topic

Past Event

Past Event

Energy digitalization: challenges and opportunities for the industry

What are the the industrial implications of Europe’s digital energy revolution? What new business models do we need to make the best of it? What policy frameworks do we need to facilitate this development?

Speakers: Laura Cozzi, Jean Jacques Marchais, Hans Nieman, Mark van Stiphout and Simone Tagliapietra Topic: Energy & Climate Location: Bruegel, Rue de la Charité 33, 1210 Brussels Date: January 17, 2018
Read article More on this topic

Blog Post

No Financial Meltdown

Intel suffered only minimal pain in the stock market following revelations about the ‘Meltdown’ hardware vulnerability. But if the market won’t compel providers to ensure the safety of their hardware, what will?

By: Alexander Roth and Georg Zachmann Topic: Innovation & Competition Policy Date: January 15, 2018
Read article More by this author

Blog Post

The Bitcoin Bubble

The price of bitcoin has just passed $11,000. A year ago it was worth less than $800. Economists and commentators are thus increasingly concerned that this may be a bubble waiting to burst. We review recent opinions on the topic.

By: Silvia Merler Topic: Finance & Financial Regulation, Global Economics & Governance Date: December 4, 2017
Read article More on this topic More by this author

Opinion

Brexit: When the banks leave

More than a tenth of the City’s business is now bound to go, but how much worse could things get?

By: Nicolas Véron Topic: Finance & Financial Regulation Date: December 1, 2017
Read about event More on this topic

Past Event

Past Event

Antitrust Concerns in Digital Markets

Following our past events on the topic of antitrust concerns in zero price markets and on big data, digital platforms and market competition, this November we are hosting an event on antitrust concerns in the digital markets.

Speakers: Svend Albaek, Cristina Caffarra, Justus Haucap, Jorge Padilla and Georgios Petropoulos Topic: Innovation & Competition Policy Location: Bruegel, Rue de la Charité 33, 1210 Brussels Date: November 29, 2017
Read about event More on this topic

Past Event

Past Event

EU - CELAC Economic Forum - Channels for a joint future

On 11 October Bruegel together with GIGA and Real Instituto Elcano will organise a conference on relations between the EU and the Community of Latin American and Caribbean States.

Speakers: Paola Amadei, Angel Badillo, Paulo Carreño King, Linda Corugedo Steneberg, Gonzalo de Castro, Gonzalo Gutiérrez, Bert Hoffmann, Edita Hrdá, Ramón Jáuregui, Emilio Lamo de Espinosa, Eduardo Levy Yeyati, Gabriel Lopez, Enrique Medina Malo, Maryleana Méndez Jiménez, Luicy Pedroza, Mario Pezzini, Mario Soares, Everton Vargas, Dylan Vernon and Guntram B. Wolff Topic: Global Economics & Governance Location: Bruegel, Rue de la Charité 33, 1210 Brussels Date: October 11, 2017
Read article More on this topic

Blog Post

Reinforcing the EU energy industry transformation: stronger policies needed

The European energy system is being transformed by three major forces, decarbonisation, digitalisation and decentralisation. Decarbonisation is changing the European energy mix, while innovation in digital technologies is enabling disruptive change in the way energy systems are operated.

By: Simone Tagliapietra and Georg Zachmann Topic: Energy & Climate Date: September 21, 2017
Read about event

Past Event

Past Event

Bruegel Annual Meetings 2017

The Annual Meetings are Bruegel’s flagship event. They offer a mixture of large public debates and small private sessions about key issues in European and global economics. In a series of high-level discussions, Bruegel’s scholars, members and stakeholders will address the economic policy challenges facing Europe.

Speakers: Carlos Sallé Alonso, José Antonio Álvarez Álvarez, Agnès Bénassy-Quéré, Pervenche Béres, Matthias Buck, Grégory Claeys, Zsolt Darvas, Jean Luc Demarty, Maria Demertzis, Anna Ekström, Lowri Evans, Ferdinando Giugliano, Sandro Gozi, Peter Grünenfelder, Reiner Hoffmann, Levin Holle, Kate Kalutkiewicz, Steffen Kampeter, Peter Kažimír, Emmanuel Lagarrigue, Matti Maasikas, Steven Maijoor, Reza Moghadam, Nathalie Moll, James Murray, Johan Van Overtveldt, Julia Reinaud, André Sapir, Dirk Schoenmaker, Mateusz Szczurek, Marianne Thyssen, Jean-Claude Trichet, Reinhilde Veugelers, Nicolas Véron, Ida Wolden Bache, Liviu Voinea, Guntram B. Wolff and Georg Zachmann Topic: Energy & Climate, European Macroeconomics & Governance, Finance & Financial Regulation, Global Economics & Governance, Innovation & Competition Policy Location: Square - Brussels Meeting Centre Date: September 7, 2017
Read about event

Past Event

Past Event

Is there a way out of non-performing loans in Europe?

At this event we looked at the issue of non-performing loans in Europe. The event also saw the launch of the latest issue of "European Economy – Banks, Regulation and the Real Sector."

Speakers: Emilios Avgouleas, Giorgio Barba Navaretti, Giacomo Calzolari, Maria Demertzis, Martin Hellwig, Helen Louri and Laura von Daniels Topic: European Macroeconomics & Governance, Finance & Financial Regulation Location: Bruegel, Rue de la Charité 33, 1210 Brussels Date: July 6, 2017
Read about event More on this topic

Past Event

Past Event

Lessons for the future governance of financial assistance in the EU

On 14th June, Randall Henning will present his latest book on the Euro crisis and we will discuss how financial assistance should be governed in the euro area in the future.

Speakers: Servaas Deroose, C. Randall Henning, Rolf Strauch and Guntram B. Wolff Topic: European Macroeconomics & Governance Location: Bruegel, Rue de la Charité 33, 1210 Brussels Date: June 14, 2017
Read about event More on this topic

Past Event

Past Event

Substance requirements for financial firms moving out from the UK

In the run-up to Brexit, UK-based financial firms are considering how to organize their operations across the future divide between the UK and EU27. This event will discuss the regulatory requirements on how self-sustaining the operations in the EU should be, and implications for the single market and third countries.

Speakers: Gerry Cross, Simon Gleeson and Nicolas Véron Topic: Finance & Financial Regulation Location: Bruegel, Rue de la Charité 33, 1210 Brussels Date: June 2, 2017
Load more posts