Developments in Financial Services: UK and EU Approaches to Digital Finance

By specific reference to digital finance, or FinTech, this chapter addresses how modern developments in financial services may impact on future UK-EU relations. The chapter argues that there are clear opportunities for enhanced collaboration and coordination of regulatory standards, even though the UK and the EU have taken differing approaches in the regulation of digital finance. In demonstrating how digital finance represents a foremost policy concern for both the UK and the EU, the chapter provides an overview of contemporary UK and EU regulatory policies and initiatives. The chapter proceeds to describe how UK and EU regulatory positions could be adapted, especially in light of particular technological innovations and the emergence of open banking regimes. The chapter considers the options for enhanced collaboration and standard-setting. By recognising the possibilities for improved collaboration in digital finance, the chapter contends that a strengthening of the future UK-EU relationship can, in turn, facilitate much-needed regulatory clarity at an international level.