Ireland has become one of the key places not only in Europe but also in the world where fintech companies have settled. If you plan to establish a fintech company in Ireland or EU, then this review will be relevant for you, containing key aspects of the speech of top officials of the Central Bank of Ireland.
In a recent speech that touched on many issues of digital finance in Europe, the Bank management shared some thoughts on the current topic of technological innovations in finance in the European space.
Fintech Companies Regulation in Ireland
Fintech in Ireland is governed by the EU Directive 2009/110 / EC, which has become the basis of Irish financial law, as well as the EU (Payment Services) Regulations 2018.
It should be noted that Ireland’s payment system may operate throughout the whole European Economic Community.
Attention to Risk Management
Today, evolution in the financial sector is happening at an incredible rate.
In this context, the most important task for regulators is to strengthen and modernize methods for supervising the activities of EU fintech companies so that the protection of the financial industry is not undermined by new challenges.
Therefore, the operating structure and risk management system of fintech companies in Ireland should be separated. If you provide financial services in Ireland, it is recommended that you hire an Irish specialist that deals with risk management issues.
Consumers Safety is the Priority
Technological progress should be directed to the benefit of consumers. Acceleration of processes, penetration and the power of analysis that accompany such progress should not be used to the detriment of consumers.
Techno innovations should not impede the development of relations between financial firms and their customers - consumers of financial services. Advances in digital finance open up opportunities for new products, services and ways to interact with consumers and the market, which were hard to imagine 10 years ago. But they also require tougher measures to strengthen the counteraction illegal activities. If you intend to set up a financial company in Ireland, you must comply with the AML / CFT rules.
Big Data Analytics
The BDA serves as the basis for the introduction of artificial intelligence, which creates significant advantages for valuation processes such as pricing, creditworthiness and underwriting, and last but not least, the identification of fraud.
The Bank officials also noted that technological innovation is now providing sufficient help to cope with the current global crisis connected with COVID-19 pandemic.
Ireland has opened its doors wide and encourages initiatives to introduce high technology in the financial sector, as well as entrepreneurs who want to open a financial company in Ireland. Much attention is paid to protecting consumer rights, improving security measures in connection with technological risks.
If you plan to open a fintech company in Ireland or in one of the EU countries, then you need to be aware of current changes in the regulatory framework governing this area. To get more information, please fill out the form on the website and request a consultation on fintech regulation in Ireland with our experienced specialists.