FinTech – Financial sector innovations

FinTech = Financial Technology, namely technology, notably information technology, that is used for the provision of banking, insurance, financial, investment or payment services. The term is also used to refer to growth companies that develop new financial technologies or new services based on financial technologies.

Examples of FinTech innovations and phenomena

  • robotic asset management
  • mobile wallets
  • customer service chatbots
  • crypto assets, such as Bitcoin, Litecoin and Ethereum
  • peer-to-peer lending and peer-to-peer insurance
  • smart contracts.

What is the FIN-FSA’s role in digitalisation and FinTech issues?

Digitalisation is transforming the structures and operating practices of society, and the financial sector is no exception. Increasing competition, regulatory reform and changing customer needs and expectations are encouraging financial companies to develop services and products based on new technologies for their customers. The FIN-FSA keeps track of technological advances and trends in the financial sector, accommodating its supervisory activities to reflect the development of the sector. The FIN-FSA is also the authorisation authority for financial companies. New service providers, such as FinTech start-up companies, apply for authorisation or registration with the FIN-FSA, as required. The FIN-FSA welcomes innovation but, in its role as an authority, it also needs to identify the risks inherent in innovation.

  • Press release
    Strong capital position protects the financial sector from risks – increased uncertainty in the economy and financial market Despite the challenging operating environment, the solvency of the Finnish financial sector remained strong in 2024. The banking sector's capital ratios remained virtually unchanged and higher than the European average. The employee pension sector's solvency ratio strengthened from the previous year, and the solvency of the life and non-life insurance sectors remained good. In Finland's fund sector, capital figures reached a new record, but the situation of open-end real estate funds is still challenging. Geopolitical risks and the spreading of the trade war continue to threaten the pick-up in the economy and are increasing uncertainty in the financial markets.
    Press realease Financial position and risks of supervised entities
  • Press release
    Combined penalty payment of EUR 100,000 to Savcor Technologies Oy for omissions to notify managers’ transactions The Financial Supervisory Authority (FIN-FSA) has imposed a combined penalty payment on Savcor Technologies Oy. The company had failed to notify the issuer and the FIN-FSA of a pledging and transfer made on its own account. Moreover, another transaction notification filed by the company stated an incorrect date. A transaction notification must be made promptly and no later than three business days after the date of the transaction, and it must indicate, inter alia, the date of the transaction. The company was a closely associated company of a person discharging managerial responsibilities in Valoe Plc.
    press release penalty payment fin-fsa
  • Press release
    Combined penalty payment of EUR 30,000 to BBS-Bioactive Bone Substitutes Plc for omissions concerning listed companies’ notification obligation
    penalty payment
  • Press release
    Combined penalty payments imposed on three natural persons for late notification of managers’ transactions The Financial Supervisory Authority (FIN-FSA) has imposed a combined penalty payment for several omissions on each of Pekka Jalovaara, Jarmo Halonen and Ahti Paananen. They had failed to notify the issuer and the FIN-FSA within the deadline about transactions conducted on their own account. A transaction notification must be made promptly and no later than three business days after the date of the transaction. The late notifications relate to the position of Jalovaara, Halonen and Paananen as managers at BBS-Bioactive Bone Substitutes Plcj.
    Press release FIN-FSA penalty payment
  • Press release
    Application of DORA has started – FIN-FSA to focus on the management of ICT risks and cyber-threats in its supervision

    The objective of DORA (Digital Operational Resilience Act) is to improve consumers’ data security and the continuity of services. It brings about significant reforms in the operational resilience of the financial sector and covers almost all entities supervised by the FIN-FSA.

    Press release FIN-FSA financial sector digital operational resilience dora