CNB launches FinTech contact point
On 1 November 2019, the CNB is establishing a FinTech contact point. In so doing, it is following the lead of the European Supervisory Authorities, which already have FinTech support programmes in place.
The FinTech contact point is aimed at promoting the introduction of innovative technologies on the Czech financial market through closer and more active communication with incumbent institutions and potential new entrants.
The CNB wants to achieve this by holding regular meetings with the FinTech community and the wider public and in particular by dealing more flexibly with relevant FinTech-related enquiries and initiatives. To this end, it has placed a contact form on a new webpage www.cnb.cz/en/supervision-financial-market/financial-innovation/. It will therefore provide FinTech advice to firms and other parties rather than establishing a special innovation hub or regulatory sandbox. On the same webpage, the CNB will also provide information on its regular meetings with the FinTech community and its roundtables on specific FinTech-related topics.
“Progress and innovation in the field of information and communication technology have had a major impact on the financial world. However, the application of new technology in the finance industry can give rise to a whole range of new issues. The CNB, which is responsible for regulating and supervising the financial market, has therefore established a special contact point to clarify these new issues and make it easier for FinTech firms to enter and operate on the financial market,” said CNB Deputy Governor Marek Mora, supervising board member for regulation, including FinTech.
Although the CNB applies the same regulatory approach to all financial market participants regardless of what technologies they offer or use, it views financial innovation as a means of solving specific problems and meeting specific needs in new ways and as a driver of change on the financial market. By launching a FinTech contact point, the CNB is not only aiming to minimise the risks associated with potential entrants’ lack of understanding of the current rules, but also demonstrating its readiness to engage in a dialogue on new, innovative business models and solutions.
Director of the Communications Division and CNB Spokesperson
Notes for journalists:
- Innovation hub
An innovation hub is form of support which, besides establishing a specialised communication channel, involves setting up a specialised organisational unit that not only coordinates communication with enquirers, but also deals with FinTech-related issues itself. The main difference between a hub and a contact point, therefore, is that the former has a specialised unit whose employees should have an awareness of innovation and FinTech as well as knowledge acquired while working in particular units at the supervisory authority (licensing, supervision or regulation).
- Regulatory sandbox
A regulatory sandbox provides selected market participants meeting the relevant entry criteria with a clearly defined environment created for them by the supervisory authority to test innovative products, services or business models. The authority also approves the test plan and the terms of operation of the sandbox in advance. The sandbox is run by a specialised unit at the authority.