The European Banking Authority Has Warned Of The Dangers To UK Payment Institutions In The Event Of A No Deal Brexit
  • Download Apps
25k+
close Image

The European Banking Authority has Warned of The Dangers to UK Payment Institutions in The Event of A No Deal Brexit

A
by Alan Jackson — 5 years ago in Entertainment < 1 min. read
3382

The European Banking Authority has warned of the dangers to UK payment institutions in the event of a no-deal Brexit.

While the main focus of cliff-edge Brexit analysis remains on financial stability and the continuity of wholesale markets, notably derivatives, the regulatory body is growing increasingly concerned about the preparations of smaller and less sophisticated institutions and, in particular, payment and e-money
institutions.

“The latter is of particular importance from an EU-27 perspective, because of the large volumes of payments business being offered by UK-based institutions through their cross-border passporting activities,” says the EBA in its annual risk assessment report. “”For such institutions, contingency planning, including relocation, where appropriate, is needed, and effective communication with customers ex-ante to prepare for any disruption is vita.”

The report also addresses the potential impact to bank profitability from the rise of non-bank fintech competitors. The EBA finds that the emergence of disruptive startups is forcing banks to rethink their business strategies and operating models.

Also read: iPhone 14 Pro Max Is Apple’s New iPhone To Be Launched In September (Know The Release Date, Specification, Rumour & More)

Banks’ strategies in this area include partnerships with startups as well as internal developments of technology-based products and services using new technologies, states the EBA, citing biometrics, digital/mobile wallets and Big Data analytics.

While one out of three EU banks had no investment in non-bank fintech firms during 2017, there is a growing investment appetite, notes the EBA.

“These investments are made mainly through venture capital funds and to a lesser degree through direct acquisitions,” states the regulator. “According to the RAQ (Risk Assessment Questionnaire) results, more than 60% of EU banks are planning to increase their investments in the next 12 months.”

A
Alan Jackson

Alan is content editor manager of The Next Tech. He loves to share his technology knowledge with write blog and article. Besides this, He is fond of reading books, writing short stories, EDM music and football lover.

Top 10 News

view all
Follow us on

Categories

Related Posts

img

Entertainment

Pokemon Unite Tier List (Best Season Pokémon)
By: Neeraj Gupta, Fri May 31, 2024

Who doesn’t play Pokemon Unite Tier List! I mean it’s a popular..

img

Entertainment

How AI Is Shaping The Intensity Of The Music Industry? Answe...
By: Ankita Sharma, Sat May 18, 2024

Whether saying AI in music industry or the music industry is tuning into AI, it..

img

Entertainment

New Bethesda’s Fallout 5: Is It Coming Or Not? Answered
By: Bharat Kumar, Tue April 9, 2024

Fallout 5 won’t be happening this year! Bethesda remains quiet about..

img

Entertainment

What Is Freely? A TV Streaming Platform Backed By BBC, ITV, ...
By: Bharat Kumar, Mon April 8, 2024

Know everything about the UK’s new streaming service backed by BBC, ITV,..

img

Entertainment

Godzilla Minus One Streaming Date, Rumors, OTT Announce ...
By: Neeraj Gupta, Thu April 4, 2024

Godzilla minus one streaming won’t happen this year. Read to know when to..

img

Entertainment

How to Restore PS5 Licenses Not Working on Consoles?
By: Evelyn Addison, Mon March 25, 2024

When trying to fix problems like games not starting up, games having a padlock..

Subscribe
Notify of
guest
0 Comments
Inline Feedbacks
View all comments

Copyright © 2018 – The Next Tech. All Rights Reserved.