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techUK calls for member input for response to FCA consultation on barriers to innovation in digital and mobile FS solutions.

Call for Input: Regulatory barriers to innovation in digital and mobile solutions

The FCA recently announced a call for input, the objective of which is to identify regulatory barriers to the development of digital and mobile solutions in financial services.

Noting the ongoing digitisation of the global economy and extent to which digital technology is increasingly significant in all sectors of the economy, the FCA recognises that digital and mobile solutions can work better for consumers and providers.

Harnessing the potential of the digital economy and the power of digital solutions is a priority at both the UK and European level; highlighted by projects in the UK public sector and the European Commission launch of the Digital Single Market Strategy. The paper also mentions opportunities for the development of identity passport (or what techUK has called a Financial Services Passport) and HM Treasury's proposals for the development of an open standard API for banks, both areas where techUK and its members are actively engaged.

The call for input summarises where the FCA has already undertaken work looking at supporting innovative firms in financial services, through the creation of Project Innovate and supporting and informing work in other parts of government. The focus now is specifically on digital and mobile services and the FCA is asking the industry to identify barriers at both the UK and European levels that may impede further development of innovative products and services that are benefitting UK (and beyond) consumers and businesses.

In response to the call for input, techUK will be pulling together member responses to the following questions:

· Question 1: What are the specific rules or policies that cause barriers to innovation in digital and mobile solutions for financial services (products or processes)? Please provide examples of when these rules or policies have stifled development and what was the impact (e.g. delay, abandonment of project, economic impact).

· Question 2: Are there any rules or policies that should be introduced to facilitate innovation in digital and mobile solutions for financial services (products or processes)? Please provide examples of when the absence of these rules or policies has stifled development and what was the impact (e.g. delay, abandonment of project, economic impact).

The FCA asks that both domestic regulatory barriers and barriers from EU law are considered. With sufficient evidence and feedback, they can seek to inform and influence decision-making in relevant organisations.

Evidence will be reviewed throughout up to the deadline which is 7 September 2015. The FCA will also look for opportunities for direct engagement with firms in the digital and mobile ecosystem who are interested in financial services. With that in mind, we will work on setting up roundtable with the FCA before the deadline and will keep you posted as those plans progress.

In the meantime, please send your thoughts and comments to either lisa.moyle@techuk.org or oisin.merrins@techUK.org.