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The Fintech Associations of Europe join forces to propose measures to finance the ecosystem according to COVID-19

May 21, 2020

The Spanish Association for Fintech and Insurtech (AEFI) together with its colleagues from twelve European countries (Italy, Portugal, Netherlands, Sweden, Ireland, Finland, Hungary, Czech Republic, Slovakia, Luxembourg and Bulgaria) wrote a letter to the European Commission, where they propose a range of regulatory, legislative and political measures to improve citizens’ access to digital financial services and to finance businesses in the fintech ecosystem. This was reported by AEFI on May 21st in Spanish to Cointelegraph.

In this statement, they pointed out that all these associations, which are part of the European Digital Finance Association, have been working for several months on reaching different agreements and exchanging best practices to promote and promote the dynamism created by the ecosystem, as well as communication between to strengthen the entire EU industry continent and the European Commission, in particular to reach agreements in the field of best practices and regulation.

The letter highlighted the financial constraints imposed to tackle the COVID 19 pandemic and how many of the digital financial services delivery solutions at least may not be fully implemented or may not be available to European members in some countries Union. Consequently, In this scenario, the associations are asking the European Commission to review their change to increase the availability of digital financial solutions and improve a digital market with greater security and reliability, particularly at the post-coronavirus pandemic stage.

The measures considered important are listed below:

Legislative measures

  • Harmonization of standards for digital identification in all Member States, first through specific guidelines and later through a legislative act.

  • Increase the contactless payment limit by relying on biometric and digital authentication solutions.

  • Creating an internal market for digital financial services that will give new entrants universal access to sandboxes across the EU and facilitate monitoring and market access by coordinating the rules for all sandboxes in the countries of the Community.

Political measures

  • Improve consumer financial health and financial inclusion through digital solutions, particularly in rural areas. Therefore, requests are made to make recommendations based on PSD2 and GDPR legislation to improve consumer access to money and financial services.

  • As Member States implement recovery programs for businesses, particularly SMEs, new assessment models should be developed to assess corporate financial health.

  • The European Commission should encourage governments to include fintech funding platforms as an alternative and efficient source for the distribution of the grant that is approved to provide information to businesses.

Financial measures

  • Special programs and specific calls under existing and new EU programs to finance the development of financial technologies. They should be particularly open to new businesses and small innovative businesses, and their application should be less complex and their assessment faster.

  • The EUvsVirus event can become a continuous fintech hackathon, where successful ideas can be included in a European sandbox if necessary and financially supported by European funds.

  • The European Commission should increase the level of RD funding for new European companies and speed up the provision of funding to simplify the application process.

  • The European Commission, in particular through the European Investment Fund, should support new and fast-growing companies and also encourage larger private capital investments in these companies.

The Fintech Associations of Europe join forces to propose measures to finance the ecosystem according to COVID-19
The Fintech Associations of Europe join forces to propose measures to finance the ecosystem according to COVID-19

Rodrigo Garcia de la CruzThe President of the Association of Fintech and Insurtech Companies in Spain (AEFI) referred to these questions and said:

“European fintech companies need the support of the European Commission to guide COVID-19 economic recovery and to put expertise and know-how at the service of society after years of developing sophisticated technological products and services . ”

About the Fintech and Insurtech Association of Spain

The Association of Fintech and Insurtech Companies in Spain (AEFI) was founded with the aim of creating a favorable environment for the development of startups and fintech and insurtech companies in Spain. Represents fintech through vertical groups led by specialized coordinators.

The association tries to collaborate, innovate and position Spain as a pioneering focus of FinTech and InsurTech. Build bridges in the Spanish FinTech ecosystem and promote interaction between key market players.

AEFI currently has more than 140 affiliates and 28 international alliances.