Overview


The MFSA’s FinTech Strategy aims to establish Malta as an international FinTech hub which supports and enables financial services providers to infuse technology in product and service offerings to drive innovation.

The MFSA aims to establish the foundations to enable FinTech start-ups and scale-ups, technology firms and established financial services providers to develop viable FinTech solutions which drive innovation and enhance access to financial products, increase competition, deliver better customer experiences, and ultimately, contribute to the long-term success of the Maltese financial services sector.

The MFSA FinTech Strategy had been published for industry consultation through a Consultation Document. The feedback received and the MFSA’s response and position thereto are summarised in this Feedback Statement.

The Six Strategic Pillars

The MFSA FinTech Strategy proposes to set out six pillars for the MFSA to create a holistic long-term approach to catalyse innovation, growth and competition in the financial services sector, whilst ensuring robust investor protection, market integrity and financial soundness.

Regulations

Ecosystem

Architecture

Knowledge

Security

Adopt regulatory and supervisory initiatives to support innovation and improve regulatory efficiency.

The MFSA published a Consultation Document proposing (i) the MFSA Regulatory Sandbox, which will encourage FinTech innovation through its stated objectives and (ii) to set up a framework for the regulatory certification of RegTech solutions, while also encouraging persons developing SupTech solutions to approach the Authority through a dedicated online form. Additionally, a status update of the other strategic objectives presented under Pillar 1 of the FinTech Strategy is also provided.

Industry participants and interested parties are invited to send their responses through an online survey, developed specifically for this purpose, by not later than 30 August 2019.

FinanceMalta, in collaboration with the MFSA, will be holding a Conference and Workshop vis-à-vis this Consultation Document on 30 July 2019. Interested parties are invited to attend to discuss the initiatives being proposed under this Pillar. Further details may be found through the following link.

Foster community, demand and collaboration and enhance access to finance.

The development of this pillar involves various deliverables aimed at creating a holistic all-encompassing ecosystem which has the necessary building blocks to foster financial innovation from both start-ups and industry incumbents. The strategic objectives under the Ecosystem Pillar are:

  1. Malta FinTech Innovation Hub
  2. National Cooperation
  3. Access to Finance and Resources
  4. Collaboration between FinTechs and Sector Incumbents
  5. Market Education, Inclusion and Adoption

Encourage collaboration through the adoption of Open APIs and shared platforms.

The MFSA intends to promote the implementation of open architecture and the use of APIs in financial services to bring about a great degree of functionality and versatility.

Additionally, the MFSA intends to carry out a scoping and consultation exercise to determine the need and interest in shared platforms. Should the scoping exercise show that shared platforms would be beneficial for the industry as a whole, the MFSA is proposing to initiate discussions with its partners and interested parties to develop and implement the proposed solutions.

Cultivate deep talent pools and stimulate research and collaborative ideation.

The MFSA wishes to cultivate the country’s talent pool by means of specific policies and programmes focusing on increasing Malta’s capacity through national and international initiatives. One of these initiatives is the establishment of an Academy offering specialised training to financial supervisors.

The MFSA is also further suggesting the implementation of programmes to encourage R&D in innovation, in collaboration with government, other authorities and agencies and the private sector.

Establish an environment that is resilient to cybersecurity threats.

In order to mitigate the possibilities of unintended consequences and threats emerging from the nature of the technologies employed, it is paramount that FinTechs and industry incumbents implement robust and comprehensive cyber security risk-management systems including risk-mitigation techniques and recovery plans in case of cyber incidents.

Timeline of Events


  1. FinTech Strategy | Consultation

    - February 5th, 2019

    While supporting the financial services industry to harness the opportunities presented by technological innovation, the MFSA is seeking to provide legal and regulatory certainty to industry players and ensure effective investor protection, market integrity and financial soundness in the FinTech environment, by embarking on a longer-term strategy.
    The Authority thus proposed the MFSA FinTech Strategy which presents a wider, cross-sectorial approach underpinned by six strategic pillars. The key foundational elements of the Strategy will be the introduction of a ‘FinTech Regulatory Sandbox’ and a FinTech Innovation Hub. The Consultation Document presented the MFSA’s vision and strategy towards developing Malta into a global FinTech hub.

  2. FinTech Strategy | Feedback Statement

    - May 15th, 2019

    Following an extensive consultation with key stakeholders, the MFSA has finalised its FinTech Strategy, a key document in the Authority’s efforts to position Malta as a global FinTech Hub. The MFSA has also published a feedback statement highlighting the feedback received.

  3. Pillar 1 – Regulations | Consultation

    - July 4th, 2019

    Through the first Pillar of the FinTech Strategy, Regulations, the MFSA envisages to “adopt regulatory and supervisory initiatives to support innovation and improve regulatory efficiency.”
    The Authority is thus publishing this Consultation Document proposing (i) the MFSA Regulatory Sandbox, which will encourage FinTech innovation through its stated objectives and (ii) to set up a framework for the regulatory certification of RegTech solutions, while also encouraging persons developing SupTech solutions to approach the Authority through a dedicated online form. Additionally, a status update of the other strategic objectives presented under Pillar 1 of the FinTech Strategy is also provided.
    Industry participants and interested parties are invited to send their responses through an online survey, developed specifically for this purpose, by not later than 30 August 2019.

  4. Pillar 1 – Regulations | Consultation Event

    - July 30th, 2019

    Finance Malta, in collaboration with the MFSA, will be organising a briefing and consultation event with regards to the Consultation Document on Pillar 1 of the FinTech Strategy. The objectives of the Workshop are to:

    Provide an in depth overview of the Consultation Document
    Engage with the audience for feedback

    Prospective Sandbox participants, collaborators and stakeholders from finance, law and tech are all invited to attend this workshop and communicate their views.
    For further info and registration, please follow the following link.

Publications


  MFSA FinTech Strategy

  Feedback Statement

  MFSA FinTech Strategy – Pillar 1 Regulation

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