Regulatory Tools to Encourage FinTech Innovations: The Innovation Hub and Regulatory Sandbox in International Practice

Péter Fáykiss (), Dániel Papp (), Péter Sajtos () and Ágnes Tõrös ()
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Péter Fáykiss: Magyar Nemzeti Bank
Dániel Papp: Magyar Nemzeti Bank
Péter Sajtos: Magyar Nemzeti Bank
Ágnes Tõrös: Magyar Nemzeti Bank

Financial and Economic Review, 2018, vol. 17, issue 2, 43-67

Abstract: In our study, we assess the regulatory tools that can be applied to encourage FinTech innovations, also focusing on the aims of financial stability. After reviewing the opportunities and risks of FinTech innovations from micro- and macro-prudential aspects and in terms of consumer protection, we present the kinds of possible regulatory responses to the challenges raised by FinTech phenomena and the regulatory tools which are applied in international practice. We analyse these practices from the aspect of legal implementation, detailing their similarities and differences. Finally, we briefly present Hungarian regulatory initiatives encouraging FinTech innovations. An assessment of international cases reveals that there is no generally effective, standardised solution that meets every geopolitical requirement: when the concepts are developed, the special features of the financial intermediary system of the given country and the level of financial culture must also be taken into account.

Keywords: financial stability; fintech; innovation hub; regulatory sandbox (search for similar items in EconPapers)
JEL-codes: F39 G28 K2 (search for similar items in EconPapers)
Date: 2018
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Citations: View citations in EconPapers (7)

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Persistent link: https://EconPapers.repec.org/RePEc:mnb:finrev:v:17:y:2018:i:2:p:43-67

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