THE FINTECH REGULATION REPORT: How European regulators are creating fertile ground for fintech growth

Financial technology known more commonly asfintechis attracting a lot of attention globally. Fintech companies provide technologies that aim to disrupt the financial services industry by making financial products more efficient and more widely distributed with lower overhead costs.The industry is booming, with VC-backed fintech investment growing106% to reach 10 billion ($13.8 billion)in 2015. But the new business models fintechs are bringing to market also need to be regulated, and the old models aren't sufficient. The approach regulators take will have a significant impact on how big fintech gets and how fast it gets there.In a new report from BI Intelligence, we explain how regulatorsin Europe are successfully growing fintech innovation and how it's becoming a model for regulators around the world.Here are some of the key takeaways:The financial technology sector is booming, and Europe is a leading region for growth.VC-backed fintech companies in Europe raised 1 billion($1.5 billion) in funding across 125 deals in 2015.With this boom in funding comes a need to regulate the nascent industry.There are a variety of approachesactive, passive, and restrictivethat regulators can take. The EU and theUK, in particular, have taken an active approach, in order to encourage growth.The regulation that will have the most impact on the European fintech market is the Second Directive on Payments Services, known as PSD2. It willforce banks to open up their systems to fintechs. This will allow fintechs to act as intermediaries between banks and their customers.The UK regulator is actively promoting its approach to regulation as a model for other countries to follow. Some of its innovations are already being copied by other regulators around the world.In full, the report:Examines the different approaches to fintech that regulators can takeExplains the key EU laws thatwill affect the European financial services industry in the next two years and beyondExplores the potential impact of new regulationsDetails the workings of the initiative central to the UK regulator's approach to fintechHighlights what can be achieved when regulators, governments, and fintech companies work togetherInterested in getting the full report' Here are twoways to access it:Subscribe to anAll-Accesspass to BI Intelligence and gain immediate access to this report and over 100 other expertly researched reports. As an added bonus, you'll also gain access to all future reports and daily newsletters to ensureyou stay ahead of the curve and benefit personally and professionally. >> Learn MoreNowPurchase & download the full report fromour research store. >> Purchase & Download NowJoin the conversation about this story
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