The MFSA is aligning Malta as an international FinTech hub
The MFSA has completed it’s new FinTech strategy, subsequent to a comprehensive discussion with key stakeholders. The authority’s efforts to position Malta as a global FinTech Hub is demonstrated through the Strategy. Together with this, the MFSA has published a statement outlining the feedback received. The following points were identified by respondents:
#1 Positive Feedback
The recommended strategy was positively received with the stakeholders commenting that it is aligned with the trends being observed within the FinTech sector, as well as considering the needs of the market. It was also noted that the proposed approach acts as an enabler of technology-induced financial innovation.
#2 Robust Vision, Mission and Six Pillars
Although six pillars are listed as actionable measures for achieving long-term sustainability of the FinTech sector, the crucial elements of Malta’s establishment as a global FinTech Hub are the application of the Regulatory Sandbox found under
- Pillar 1- Regulations; the FinTech Innovation Hub
- Pillar 2- Ecosystem and Open Application Programme Interfaces; and
- Pillar 3 - Architecture.
#3 Three main drivers
Weight was placed on the importance that the strategy is centralised on sustainable financial innovation, open dialogue and efficient and effective implementation.
#4 Threats and Implications
Principal threats and implications anticipated by respondents were
- proportionality and level playing field issues;
- the barrier to entry for FinTech start-ups and scale-ups;
- lack of access to resources by FinTechs and established financial services providers;
- security threats, particularly those relating to cybersecurity; and
- regulatory arbitrage by FinTechs towards other European or third-country jurisdictions with lower regulatory costs and barriers potentially brought about by the Strategy.
The MFSA’s integrated concept the FinTech sphere is driven by wanting to create an innovation-friendly environment within the financial services sector whilst ensuring effective investor protection, financial market integrity and financial stability. The authority has registered the first nine VFA agents.