European Central Bank’s New Licensing to Cover Fintechs

The European Central Bank is working on new licensing guidelines that could cover fintech companies, ECB’s Supervisor Daniele Nouy said at a conference today.

According to statement released today, Nouy said:

This guide will be published shortly for the purpose of a public consultation… The technical and financial hurdles have become a bit lower; the (banking) market has become more contestable.

Fintech is gaining momentum in Europe. A recent report by CB Insights shows a rise in fintech M&A activity in Europe, with more than 80 transactions so far this year. The report suggests the industry this year will hit a record high for M&A deals.

Fintech has attracted $6.5 billion of investment in the first half of 2017 alone, The New York Times reports.

Read more at Reuters and New York Times.