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.
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Penalty payments to three companies for late notification of managers’ transaction
The Financial Supervisory Authority (FIN-FSA) has imposed a penalty payment on Meriaura Invest Oy and Pokela Oy Iso Omena, and a joint penalty payment for several omissions on Myvision Oy. The companies 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 companies concerned are closely associated companies of persons discharging managerial responsibilities in issuers.Press release
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Differences in Finnish banks’ impairment staging of loans – Timely and adequate loan loss provisioning requires effective credit risk management
An analysis by the Financial Supervisory Authority (FIN-FSA) has found differences and potential shortcomings in the way Finnish banks classify loans according to stages of impairment. The current environment of elevated risks highlights the importance of appropriate classifications and adequate and timely recognition of impairments. Excessively low and delayed loan loss provisioning may, if the risks materialise, lead to higher impairments and a weakening of banks’ capital adequacy.Press release
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Macroprudential decision: Housing loan cap and countercyclical capital buffer requirement for banks remain unchanged
Press release
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Financial sector's capital position as at 30 June 2024: Sluggish economic growth and geopolitical tensions have maintained the financial sector's risks at a high level – capital position has remained strong
Despite the difficult cyclical conditions, the Finnish financial sector has coped well during the first half of the year. The banking sector's capital position remained strong in the first half of the year. Non-performing loans increased slightly both in household and corporate credit, but their levels are still among the lowest in Europe. In the insurance sector, too, solvency remained good. Early signs of positive developments in the economy are overshadowed, however, by many risks that are also affecting the financial sector. Geopolitical tensions, in particular, have risen to the fore in the early autumn.Press release
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Macroprudential decision: Housing loan cap and capital buffer requirements for banks remain unchanged
Press release
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FATF invites comments on proposed revisions to FATF Recommendations – consultation period ends on 6 December 2024
Supervision release
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Thematic review: FIN-FSA calls attention to the clarity of investment funds’ sustainability disclosures and the role of risk management in monitoring sustainability risks
Supervision release
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Clear shortcomings in valuation practices for real estate collateral and credit risk management for housing company loans
Supervision release
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Regulations and guidelines 2/2024 Risk management concerning mortgage bank operations enter into force on 1 January 2025
Supervision release
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The Financial Supervisory Authority has published a summary of its sanctions risk assessment
Supervision release