Ireland: Financial Sector Assessment Program-Technical Note on Oversight of Fintech
IMF Staff Country Reports, July 27, 2022
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- Ireland: Financial Sector Assessment Program-Technical Note on Oversight of Fintech
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Bibliographic details
- Published: July 27, 2022
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9798400216619.002
Key findings: fintech sector evolution and market dynamics
- Ireland’s fintech sector is growing in importance through:
- the entry of innovative new players, and
- digital transformation of incumbents’ business models and products.
- Incumbent retail banks in Ireland are dedicating significant resources to digital transformation.
- Fintechs are enlarging consumer choice through innovative new services.
- Under the EU’s passporting framework, host regulators receive limited information on the activities that passporting entities carry out in their jurisdiction.
Policy framework and institutional responses
- The Irish Government has adopted a Strategy implemented by annual action plans for the development of Ireland’s international financial services sector that includes several initiatives of relevance to fintech.
- The Central Bank has an Innovation Hub that provides a single point of contact for stakeholders on fintech-related issues.
- The Central Bank should further intensify its efforts to monitor developments on crypto-assets through systematic data collection within the scope of its powers and, where unacceptable risks remain, issue carefully targeted warnings and investor communications.
Risks identified
- Risks arising from fintech innovations and digital transformation warrant monitoring by authorities.
- Limited information flows to host regulators under EU passporting can constrain oversight of cross-border fintech activities.
- Crypto-assets developments require intensified monitoring and, if necessary, targeted communications to investors.
Recommendations and policy responses
- Intensify systematic data collection on crypto-assets within the Central Bank’s scope of powers.
- Where unacceptable risks related to crypto-assets remain, issue carefully targeted warnings and investor communications.
- Maintain and develop the Innovation Hub as a single point of contact for fintech stakeholders.
- Continue implementation of the Government’s Strategy and annual action plans to support the development of Ireland’s international financial services sector with fintech-relevant initiatives.
Publication and metadata
- Publication date: July 27, 2022
- Pages: 29
- Volume: 2022
- Issue: 243
- Series: Country Report No. 2022/243
- DOI: https://doi.org/10.5089/9798400216619.002
- Stock No: 1IRLEA2022009
- ISBN: 9798400216619
- ISSN: 1934-7685
- Subject: Crime, Economic sectors, Financial services, International organization, Monetary policy, Technology
- Keywords: Anti-money laundering and combating the financing of terrorism (AML/CFT), central bank of Ireland, customer base, Cyber risk, Financial sector, Fintech, Global, host regulator, markets authority, support firm, Virtual currencies
International Monetary Fund. Ireland: Financial Sector Assessment Program-Technical Note on Oversight of Fintech (IMF Staff Country Reports 2022, 243).
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- Executive Summary