DNB fosters fintech innovation with responsible supervision
Steven Maijoor, Executive Board Member and Chair of Supervision of De Nederlandsche Bank, emphasized the central bank's commitment to fostering fintech innovation. Speaking at a Money20/20 pre-event in Amsterdam, Maijoor stressed that new financial technologies must operate responsibly within a stable financial system.
Navigating fintech innovation responsibly
De Nederlandsche Bank (DNB) views the Netherlands as an open and attractive 'harbour' for fintech innovation, welcoming new developments that can operate responsibly within the financial system.
Maijoor highlighted DNB's licensing process as a 'harbour pilot,' offering supervisory guidance to fintechs for safe market entry, especially when firms are well-prepared.
He encouraged early and informal engagement with DNB to better understand new business models and assess their soundness within the regulatory framework.
Despite differing roles, supervisors and entrepreneurs share the common goal of a stable, safe, and thriving financial system, with fintechs needing supervisors for trust and stability, and supervisors needing fintechs for innovation and dynamism.
Streamlining the licensing journey
De Nederlandsche Bank has significantly improved its fintech licensing process, reducing processing times for well-prepared applications by nearly half.
This efficiency gain emphasizes clarity, limiting feedback rounds to three and intervening early on incomplete submissions to prevent prolonged uncertainty.
Maijoor stressed that while innovation is essential, it also introduces risks, as demonstrated by incidents like Wirecard and crypto failures.
Responsible innovation is crucial for maintaining public trust.
DNB applies proportionate supervision, tailoring requirements to risk and scale without compromising baseline standards, ensuring a level playing field.
A forthcoming 'Fintech handbook' will further clarify the licensing process and mutual expectations.