Hayes to lead negotiations for EPP on Fintech
Brian Hayes MEP today confirmed that he has been selected to lead negotiations for the European People’s Party in the European Parliament on a report on Fintech (financial technology) which will be negotiated this autumn.
“Fintech is a big new part of our financial services industry in Ireland. We need to be prepared for what comes out of the EU in terms of regulation. Dublin has a huge amount of expertise in the Fintech sector and has adapted well to the rise of Fintech as a global trend.
“The potential for further development of the sector in Ireland is enormous. Globally, Fintech investment more than tripled to about 12 billion US dollars in 2014 and this has almost doubled in 2015.
“Fintech does pose a threat to some incumbent market players, particularly banks, but I believe it is healthy that we have this kind of competition. We want to ensure that financial services are provided to customers in a simple and effective manner and if fintech pushes this agenda forward, then we as legislators need to pave the way for its development. This is a market that will help us to easily transfer money, to carry out mobile payments in a matter of seconds and carry out stock market investment easily on our phones.
“The problem is that banks have become automated in a step-by-step way through outdated back office systems. This has created major problems with their payment systems which is unsustainable going forward. Irish banks unfortunately don’t have state-of-the-art IT systems which is creating a drag on banking and payment practices. But we are in a society where ease of carrying out practical tasks is paramount. This is a market which will develop rapidly. This is not just for start-ups to flourish, but if banks get on board the fintech agenda, they too can prosper in this area.
“The industry has been left largely unregulated and this needs to change. With the right type of regulation, fintech can be allowed to grow and flourish.
“The European Parliament will produce a report this autumn on Fintech. This will be the first major position by a European institution specifically on fintech and it is important that we set the agenda in a positive way. I will be working with the financial services sector in Ireland to develop a strong Parliament position that can put the industry on a positive footing for the future.”