Digital finance

Investments in financial technologies have increased significantly in recent years and the financial industry is experiencing a high rate of innovation. Many people now interact with banks and borkers through their mobile phones, and payments, transfers and investments can be made through a variety of tools. Artificial intelligence, social networks, cryptography, cloud services and various mobile applications have given rise to new services and business models that have been introduced by both new entrants and established financial institutions.

Blockchain and artificial intelligence are some of the technologies that enable businesses and individuals to gain greater access to financial services and improve the efficiency of the financial system. The new technologies increase choice and efficiency for both consumers and market participants, helping to break down barriers and increase competition in areas such as online banking, payments and transfers, and investment advice and services.

Work at EU level

For some years now, the European Commission has been analysing how the financial sector can benefit from digital developments without compromising consumer and investor protection. This is part of the Commission’s work on the Digital Finance Agenda.

In September 2020, the European Commission published several proposals, which have since been taken forward in the legislative process, in the area of Digital Finance aimed at developing a more competitive and innovative European financial sector. It is intended to support the development of new technologies such as cryptography, artificial intelligence and cloud computing in the financial sector and is part of the Commission’s efforts to build a Capital Markets Union. The Commission’s work addresses three main areas or questions: how to deepen the internal market for digital financial services, how to make the financial regulatory framework more innovation-friendly, and how to increase the operational resilience of the financial system while managing different risks and ensuring that the same rules apply to everyone. The strategy also includes rules for markets in crypto assets.

The work of the association

Within the framework of the working group for Digital Finance, members of the Swedish Securities Markets Association discuss the technical and regulatory developments in Digital Finance are discussed, with a particular focus on relevant regulations that are discussed primarily at the EU level. The working group also responds to various consultations in the area, including on crypto-assets and the EU’s agenda for Digital Finance.

In connection with the discussions and negotiations taking place in the EU in this area, the association regularly assists decision-makers and authorities with comments and positions on relevant regulations and initiatives.