Fintech +, the new channel on financial innovation from Banco de Portugal
Today Banco de Portugal unveiled a contact channel, Fintech +, to clarify questions on financial innovation, providing relevant information in this field.
Through this initiative, Banco de Portugal aims to foster dialogue with current and future financial market operators, promoting equal treatment among the various participants.
What is 'fintech'?
'Fintech' may refer to entities that operate in the financial sector and that have business models based on innovative technologies. It may also refer to the technologies themselves, applied to financial services and used by those entities or traditional financial system participants like banks and payment institutions. 'Fintech' is a portmanteau word formed from the phrase 'financial technology', which relates to the application of technology to financial services provision.
Why is Banco de Portugal keeping track of fintech?
Banco de Portugal follows developments in financial innovation, in order to identify the risks and opportunities that these transformations represent for financial stability and the smooth functioning of the payment systems. To this end:
- It partners with the relevant national and international entities in the development of financial services regulation, including the National Council of Financial Supervisors, the European Banking Authority, the Single Supervisory Mechanism and the European Systemic Risk Board;
- It encourages and takes part in debate on the risks and opportunities that technological innovation – for example, artificial intelligence, the technologies behind the so-called 'virtual currencies' and the use of big data – puts within the reach of financial services;
- It assesses the impact of digital transformation in terms of internal organisation and processes, with the goal of increasing effectiveness and efficiency in carrying out its mission to safeguard financial stability and price stability;
- It keeps track of the technological developments linked to financial compliance, commonly known as RegTech, including prevention of money laundering and terrorist financing.