How does the Basel Committee on Banking Supervision (BCBS) "Consultative Document" differ from the EBA's FinTech Discussion Paper and what does this mean EU-27's banking sector?
On 31 August 2017, the Bank for International Settlements' BCBS joined the renewed debate on how FinTech is reshaping the financial sector. The BCBS is the leading global forum for coordinating policy on improving banking supervision worldwide. This Client Alert assesses the BCBS' Consultative Document titled: "Sound Practices: Implications of fintech developments for banks and bank supervisors" and why this matters for the EU-27's banking sector and how it differs to EU and Eurozone specific policymaking in this area. Given the importance of BCBS standards, outcomes from this workstream will likely shape and influence EU and Eurozone specific rules and that will matter for providers and users of FinTech solutions. For those stakeholders, whether FinTech or "traditional" financial services providers, that are likely to be affected by the policy proposals of both papers will need to prioritise where they respond and how.