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Reform Support

Feasibility Study on the potential of data in financial services

Year
2021

Supporting reforms to develop well-regulated, stable and competitive financial markets

The Commission supports the Ministry of Finance of the Czech Republic in defining policy options for the establishment of a regulatory sandbox for innovative companies in the financial sector (FinTech).

Context

FinTech is an important tool to improve the efficiency of the financial system, drive productivity gains and promote competition.  In the context of the Czech capital market development, FinTech companies and services can facilitate access to finance for SMEs in the Czech Republic.

While the country has a vibrant IT sector with technical capacities and skills, it does not have an innovation facilitator dedicated to financial technologies. This project is linked to a European Commission priority, in particular the Digital Finance Package (2020) and the European Artificial Intelligence Act (2021).

Support delivered

The Commission provides support that consists in the following measures:

  • Mapping report of the FinTech market and applicable regulatory framework in the Czech Republic; 
  • Gap analysis and barriers that limit the development of the FinTech sector;
  • Sharing of good practices;
  • Feasibility assessment and recommendations for the effective supervision of the FinTech sector, in line with relevant Czech and EU financial markets regulations.

Expected results

The development of the FinTech sandbox features as a milestone of the Digital pillar of the Czech National Recovery and Resilience Plan (RRP). It is expected that this project facilitates the establishment of a regulatory sandbox for innovative financial services. It should contribute to the creation of an incentive ecosystem for FinTech and innovative start-ups and foster the involvement of more stakeholders in these markets, while ensuring a high level of consumer protection.

More about the project

You can find the final report here: