European Union regulators said on Monday that rapid action is needed to update how cross-border financial services are scrutinised and consumers remain protected as the sector becomes digitalised with „Big Tech” playing an increased role, according to Reuters.
People are using smartphones to buy and sell shares, move money around bank accounts and make payments, a trend accelerated by the COVID-19 pandemic, leaving regulators playing catch-up.
„Digital finance has unlocked new synergies between financial and non-financial activities that potentially introduce systemic risk into the market for financial services,” a joint report from the EU’s banking, insurance and markets watchdogs said.
„Cloud computing or banks and other financial firms using outsourced providers for services is booming,” the report said.