A combination of the words Financial Services and Technology form the name FinTech, the young technology start-ups specializing in technology-based financial systems and customer oriented financial services. The German Federal Financial Supervisory Authority (BaFin) has recently taken a great interest in FinTech and is exploring how they can include these young companies in a fair and level regulatory playing field. There are several different business models which may require authorization from BaFin. Currently, the most common business models are the following:
- Payment transactions and giro business
- Automated Financial Advice
- Virtual Currencies
More information about these business models and FinTech’s growing importance for BaFin can be found here.
In addition, the Federal Ministry of Finance has a dedicated information hub on financial services and technologies.
As part of their efforts to support young FinTech companies, BaFin has organized a conference on June 28, 2016 called BaFin-Tech 2016. The aim of the conference is to provide members of the financial community as well as entrepreneurs a view into the daily work of supervisors and regulators, especially with regards to FinTech. Workshops will offer deeper, more practical discussion on the individual business models. In addition, two panel discussions will explore the relationship between digitalization and regulation and whether FinTechs are inspirational or disruptive. More information can be found on the BaFin website (German).