European Parliament: Directorate-General for Internal Policies of the Union, James, S. and Quaglia, L., European Parliament, 2024.

‘Bigtech finance’ – i.e. the provision of financial services by large digital conglomerates - has considerable implications for the EU’s growth model and raises multiple regulatory concerns about financial stability; competition and market concentration; data protection; cybersecurity and operational resilience. Bigtechs also have potential geostrategic implications because the largest digital platforms are headquartered outside the EU. To address these global challenges, this study makes recommendations aimed at strengthening the regulation of Bigtech finance internationally and in the EU. This document was provided/prepared by the Economic Governance and EMU Scrutiny Unit at the request of the ECON Committee.

Meyer, J. and Teppa, F., European Central Bank, 2024.

This paper contributes to understanding consumers' retail payment preferences and digitalisation in personal finances. We focus on the acceptance of cashless payments in everyday situations and the use of mobile banking apps in the euro area, where the payment services market has changed significantly in recent years. In particular, we study app-based tools for day-to-day (offline) purchases that involve small amounts of money as well as digital tools for managing personal finances. By looking at factors associated with using non-cash payment methods, and app-based financial services solutions, we shed light on the topic of financial inclusion in payment services that concern consumers’ everyday choices. Using granular microdata from the European Central Bank's Consumer Expectations Survey, we find that most people prefer to use only one payment instrument. After the COVID-19 pandemic, it has mostly been cash and contactless cards. The use of cash is partly due to limited perceived acceptance of non-cash payments by merchants. We also find substantial cross-country heterogeneity and highlight the prominent role of demographic factors in choosing non-cash payment options and app-based tools when managing personal finances. While mobile banking is already popular amongst euro area consumers, the use of smart payment methods remains very limited. Our findings suggest that financial service providers should recognize the growing preference of the younger generations for alternative payment methods. Creating awareness among consumers might also lead to positive feedback effects by reducing consumers’ reliance on cash through higher perceived availability of non-cash payment options.

European Parliament: Directorate-General for Internal Policies of the Union and Niepelt, D., European Parliament, 2023.

The two progress reports provide an insightful overview over some of the thinking underlying the digital euro project. The reports remain vague in some respects, which is not surprising given the early stage of the project. This paper was provided by the Economic Governance and EMU Scrutiny Unit at the request of the ECONCommittee.

Beck, T., Giani, L. and Sciascia, G., European University Institute, 2023.

This e-book contains contributions on some of the main topics covered in the training activities which took place during the first academic year of the EU Supervisory Digital Finance Academy (EU-SDFA), either at the European University Institute (EUI) or in workshops hosted by the European Supervisory Authorities (ESAs). The EU-SDFA is a technical support project launched by the European Commission (DG REFORM) in October 2022, in cooperation with DG FISMA, the ESAs and the Florence School of Banking and Finance (Robert Schuman Centre, EUI). The e-book consists of twelve contributions from different authors grouped in three broad areas: overview of the main initiatives taken at European Union level and the challenges and perspectives from a global viewpoint; the main technologies and drivers of digital finance; the main risks and opportunities involved in digital finance. The e-book is intended to enable past and future EU-SDFA participants to complement their learning experiences, while also providing valuable documents to readers interested to get an understanding of the interplay between digital finance and supervision.

European Investment Bank Group, 2024.

This report presents the rationale behind EIB Group support for businesses and the evidence on the impact of SME targeted financial instruments. It gives an overview of relevant market failures and financing gaps, and how different EIB Group instruments address them. By addressing critical market failures, the EIB Group's business support instruments are shown to have a real impact and to be crucial to achieving the EU's strategic objectives.

European Commission: Directorate-General for Communications Networks, Content and Technology, Publications Office of the European Union, 2024.

The European Blockchain Sandbox is a regulatory sandbox which aims to establish a pan-European framework for regulatory dialogue. This initiative of the European Commission brings together national and EU regulators and authorities with providers of innovative blockchain/DLT applications in both the private and public sector to identify possible issues and solutions from a legal & regulatory perspective in a safe and confidential environment. The cross-border regulatory dialogues will allow innovators to better understand relevant laws and regulations. The exchanges will allow regulators and authorities to enhance their knowledge of cutting-edge technologies involving blockchain and distributed ledger technologies, and to exchange views and experiences with other regulators and authorities.

European Investment Bank Group, 2024.

Discover key insights from the Investment barriers report 2023, an authoritative assessment by the European Investment Bank Group on investment hurdles in the European Union. The report underscores the pivotal role of investment in the economy while meticulously detailing the constraints that impede investment at the national and EU level. This year’s report takes a particular look at the role of commercial power purchase agreements in renewable energy projects, climate resilience investments in transport systems, antimicrobial resistance, the forestry sector, and cross-border infrastructure projects. It is an essential read for anyone looking to understand the investment landscape within the European Union.

Nowak, A.M., European University Institute, 2022.

Fintech, a portmanteau of finance and technology, as such is not a novelty in finance. The most recent, post-global financial crisis (GFC) however has led to the emergence of new entities within the financial system-Fintech companies. Fintech firms develop technology-based solutions to bring innovation and new technologies to financial system. Their influence on the financial sector has been huge and is constantly growing due to continuous increase in private investments within the sector, as well as Fintech-friendly regulation. The EU Fintech policymaking has been no different in this regard; it has been created with the objective of accelerating growth and enabling innovation within the financial sector, in addition to traditional financial markets’ regulatory objectives. Moreover, when addressing risks, the EU Fintech framework has followed an activity-based principle (‘same activity-same risks-same regulation’). Such approach, however, seems not to be fully adequate for Fintech due to its distinctiveness within the financial system. The thesis thus examines whether or not the existing EU regulatory framework is tailored to the particularities of Fintech. To answer the question, the thesis develops a multidimensional understanding of Fintech. It first provides findings of an extensive desk research that discuss how Fintech has been transforming financial markets and society at unprecedented speed and scale, and how a ‘laissez-faire’ approach to Fintech regulation has contributed to that. The findings of the desk research lead to the second part of the thesis - an ethnographic study of European Fintech industry. This Fintech ethnography provides a counter-narrative to the opportunities and benefits-focused rhetoric that prevails among Fintech businessmen, scholars and policymakers responsible for Fintech regulation. By bringing the perspective of ‘the inside’ to the debate on Fintech regulation, the thesis identifies new concerns and risks, and follows with a set of regulatory recommendations in its conclusions.

European Parliament: Directorate-General for Internal Policies of the Union, Zetzsche, D., Buckley, R. et al., European Parliament, 2023.

This study analyses the need to adopt further EU financial regulation on decentralized finance after the implementation of the Markets in Crypto Asset Regulation and the revision of the Transfer of Funds Regulation, with a special view on crypto lending, crypto staking, crypto custody, the use of non-formal information, NFTs and sustainability. This document was provided by the Policy Department for Economic, Scientific and Quality of Life Policies at the request of the Committee on Economic and Monetary Affairs (ECON).

European Investment Bank Group, 2024.

This report provides new evidence on the financial constraints faced by companies as they enter the crucial scale-up phase. The analysis follows firms that received venture capital backing and reached the scale-up phase in the European Union after 2013. By tracking these firms over time, the report examines the financing they receive and the investors they attract. The report also documents the link between financial constraints and firms’ outcomes, including relocations and likelihood to exit via initial public offering or acquisition.

European Commission: Joint Research Centre, Di Girolamo, F., Hledik, J. et al., Publications Office of the European Union, 2024.

The Digital Finance Strategy focuses on fostering a competitive and innovative European financial sector by leveraging emerging trends and technologies. As part of this effort, the EU Digital Finance Platform initiative aims to provide practical tools to support the scaling up of innovative financial firms across the EU. Additionally, the establishment of a Data Hub within the platform will facilitate data exchange between national supervisors and financial firms. To ensure compliance with confidentiality requirements, the European Commission has decided to build the Data Hub using synthetic data. The report describes the datasets used to test the methodology chosen for the synthetization. In addition, the report compares the main statistical properties of the original and new database, and summarizes the tests performed to draw conclusions on potential confidentiality and privacy issues. By testing and validating the data synthesis software, the JRC and DG FISMA are working to ensure that the new dataset will be a valuable resource for firms and researchers, while also respecting confidentiality issues.