MFSA finalised it's FinTech strategy publishing a key document in the Authority’s efforts to position Malta as a global FinTech Hub. Follow this document, the MFSA also published a feedback statement highlighting the feedback received and respondents identified 4 key points:
- Positive Feedback
Respondents noted that besides reflecting the needs of the market, the proposed strategy is aligned with the trends being observed within the FinTech sector and generally deemed to be an enabler of technology induced financial innovation.
- Robust Vision, Mission and Six Pillars
The feedback indicates that while the Strategy’s Six Pillars are important towards attaining the long-term sustainability of the sector, the implementation of the Regulatory Sandbox under Pillar 1 - Regulations, the FinTech Innovation Hub under Pillar 2 - Ecosystem and Open Application Programme Interfaces under Pillar 3 - Architecture are key elements towards Malta’s establishment as a global FinTech Hub.
- Three Main Drivers
Respondents also noted that, in order to achieve its vision, it is crucial that the Strategy focuses on sustainable financial innovation, open dialogue and efficient and effective implementation.
- Threats and Implications
The feedback also included five main threats and implications: (i) proportionality and level playing field issues; (ii) barriers to entry for FinTech start-ups and scale-ups; (iii) lack of access to resources by FinTechs and established financial services providers; (iv) security threats, particularly those relating to cybersecurity; and (v) regulatory arbitrage by FinTechs towards other European or third-country jurisdictions with lower regulatory costs and barriers potentially brought about by the Strategy.
Follow this link to access the detailed Feedback Statement issued by the MFSA.