EU Commission wants the Europe’s fintech sector to grow 

EU Commission wants the Europe’s fintech sector to grow 

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Brussels will propose pan-EU licences to help some fintech companies operate across the bloc, as it fights US and Asian dominance of the burgeoning industry. The European Commission is to present draft legislation early this year to remove administrative hurdles to the cross-border operation of crowdfunding sites and peer-to-peer lending services. The initiative will ensure that EU companies can grow and compete.

The fintech industry - technology business set up to compete with traditional financial services groups - has grown rapidly in recent years, taking on banks in everything from helping people manage their monthly spending to offering cheaper payments solutions and options for businesses seeking investment.

- Europe is certainly well placed for new fintechs emerging, both in terms of the necessary skills, financing for innovation, availability of capital. Everything is here in Europe to be a great place to start fintechs. However there are still to many barriers across EU member states preventing companies from growing. We still don’t have this digital single market and that’s why we see many European fintechs then going to the US or Asia to scale up - said Valdis Dombrovskis , EU Comission Vice-President responsible for financial services.

The licensing plans are a part of a broader EU push, known as the Capital Markets Union, aimed to removing national administrative requirements and rules and stymie cross-border investment. The project had gained urgency from the UK’s impending withdrawal from the EU, which will take the city of London , the EU’s main financial hub, outside the European single market.

[Source]

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