FinTech – Financial sector innovations

FinTech = Financial Technology, namely technology, notably information technology, that is used for the provision of banking, insurance, financial, investment or payment services. The term is also used to refer to growth companies that develop new financial technologies or new services based on financial technologies.

Examples of FinTech innovations and phenomena

  • robotic asset management
  • mobile wallets
  • customer service chatbots
  • crypto assets, such as Bitcoin, Litecoin and Ethereum
  • peer-to-peer lending and peer-to-peer insurance
  • smart contracts.

What is the FIN-FSA’s role in digitalisation and FinTech issues?

Digitalisation is transforming the structures and operating practices of society, and the financial sector is no exception. Increasing competition, regulatory reform and changing customer needs and expectations are encouraging financial companies to develop services and products based on new technologies for their customers. The FIN-FSA keeps track of technological advances and trends in the financial sector, accommodating its supervisory activities to reflect the development of the sector. The FIN-FSA is also the authorisation authority for financial companies. New service providers, such as FinTech start-up companies, apply for authorisation or registration with the FIN-FSA, as required. The FIN-FSA welcomes innovation but, in its role as an authority, it also needs to identify the risks inherent in innovation.

  • Press release
    Combined penalty payments imposed on three natural persons for late notification of managers’ transactions The Financial Supervisory Authority (FIN-FSA) has imposed a combined penalty payment for several omissions on each of Pekka Jalovaara, Jarmo Halonen and Ahti Paananen. They had failed to notify the issuer and the FIN-FSA within the deadline about transactions conducted on their own account. A transaction notification must be made promptly and no later than three business days after the date of the transaction. The late notifications relate to the position of Jalovaara, Halonen and Paananen as managers at BBS-Bioactive Bone Substitutes Plcj.
    Press release FIN-FSA penalty payment
  • Press release
    Application of DORA has started – FIN-FSA to focus on the management of ICT risks and cyber-threats in its supervision

    The objective of DORA (Digital Operational Resilience Act) is to improve consumers’ data security and the continuity of services. It brings about significant reforms in the operational resilience of the financial sector and covers almost all entities supervised by the FIN-FSA.

    Press release FIN-FSA financial sector digital operational resilience dora
  • Press release
    Significant real estate risks in the Finnish financial sector – mitigated by strong buffers The situation and development of the real estate sector has a material impact on the financial position and risks of the Finnish financial sector, since banks, insurers and real estate funds have significant exposures in the real estate sector. Weaker-than-expected development of the operating environment and the real estate sector could therefore significantly increase credit, investment and liquidity risks. However, entities operating in the Finnish financial sector have buffers for real estate risks, which improves their risk-bearing capacity.
    FIN-FSA Press release
  • Press release
    Macroprudential decision: No changes to macroprudential instruments – both the housing loan cap and countercyclical capital buffer requirement for banks to remain unchanged
    Loan cap Countercyclical capital buffer
  • Press release
    Penalty payments to three natural persons for late notification deadlines of managers’ transaction

    The Financial Supervisory Authority (FIN-FSA) has imposed a penalty payment on Ari Lehtoranta, Michael Piccirillo and a person closely associated with a person discharging managerial responsibilities. These persons have failed to notify, by the deadline, the issuer and the FIN-FSA of transactions made on their own account. A transaction notification must be made promptly and no later than three business days after the date of the transaction. The delays are related to Lehtoranta’s position as a person discharging managerial responsibilities at Orion Corporation and Piccirillo’s position as a person discharging managerial responsibilities at Bioretec Ltd.

    Press release FIN-FSA penalty payment