Financial Integration of the New Member States – Case Study of Eu’s Regulatory Initiative on Financial Technologies

Abstract

New technologies are changing at a very fast course and reshaping the financial system significantly. FinTech is a relatively new term used for technology enabled innovation in the area of financial services and includes variety of products, applications, models and processes. FinTech provides new opportunities both for private sector and its consumers, increasing efficiency and integration of financial systems across Europe and worldwide. The above-mentioned trends have motivated the European Commission to initiate actions in order to promote technology enabled innovation in the area of financial services. The goal is to empower all market players in promoting new technologies such as blockchain and artificial intelligence while controlling risks and protecting consumers.Based on the analysis of secondary data, this paper aims, first, to discuss the effects these measures will have on the financial markets across Europe, especially with regard to better regulation. Secondly, the objective is to research financial integration for the New Member States' financial markets with regard to new technologies and the access they provide for financial services and consequently efficiency improvement of the financial system.