The Strategist

The European Commission makes sure if banks are ready to help their fintech competitors

10/10/2017 - 09:51

The European Commission visited banking organizations in several EU countries. The regulator checked whether the banks are preventing the financial technical companies from obtaining customer data. Thus, the European authorities want to make sure that the financial sector is ready to comply with the legislation that will enter into force from January 2018.

Fibonacci Blue via flickr
Fibonacci Blue via flickr
Representatives of the European Commission together with the antimonopoly regulators of European countries conducted an unscheduled inspection of the banking organizations of the EU. As stated in the press release of the department, regulators visited banks' offices in several EU countries on October 3. It is not specified exactly what countries were checked, but according to sources of the Financial Times, among them were the Netherlands and Poland.

Brussels inquired whether the financial institutions are ready to meet the new legislative requirements, which will come into force in January 2018. The European authorities want to involve technology companies in the market for the provision of financial services, and for this, the latter will need information about clients' bank accounts. The new rules provide that traditional banks will provide financial companies with data on their customers - of course, if users give their consent. The banking sector itself hardly welcomes such an innovation - in fact, the European Commission obliges banks to help emerging competitors. That is why regulators want to make sure that traditional financial organizations will not obstruct technology companies.

"The Commission is concerned that relevant companies and/or associations representing them can be involved in the practice of undermining free competition that violates the EU antitrust laws," the European Commission said in a statement. This practice includes isolation of non-banking organizations providing financial services by refusing to provide the latter with data on the accounts of bank customers, despite the fact that the users themselves have given permission to do so. "