New technologies in financial services
Summary:
Fintech refers to digital technologies/a variety of innovative business models and emerging technologies that have the potential to transform the financial services industry/the provision of financial services spurring the development of new – or modify existing – business models, applications, processes, and products. FinTech has the potential to improve outcomes for investors and consumers of financial services by expanding choice and lowering prices, fees, and commissions, reducing transaction costs and improving transparency in products and markets. The use of technology in financial services will be one of the themes covered by the “17th UIA Annual Business Law Forum”, that will take place in Zurich (Switzerland) from June 04 to June 05, 2026. The UIA Banking and Financial Services Law Commission will attend the Forum with a panel on “Tech Meets Banking and Finance”.
Innovation is a natural progression in any sector, including banking. Finance is undergoing a profound transformation.
Financial Technologies or “Fintech” refers to technology-enabled innovation in financial services that could result in new business models, applications, processes, or products with an associated material effect on the provision of financial services.
Fintech is increasingly transforming the way financial services are provided.
The emergence of FinTech has the potential to improve outcomes for investors and consumers of financial services by, amongst others, expanding choice and lowering prices, fees, and commissions, reducing transaction costs, improving transparency in products and markets, and increasing financial inclusion.
Fintech companies will compete against, and cooperate with, traditional banks.
Fintech is being used across financial services to improve compliance (RegTech) and help regulatory authorities achieve their objectives (SupTech), enhancing risk management, compliance, and supervision. FinTech creates new challenges for financial regulators.
The use of new technologies in financial services can also generate new risks.
International collaboration is always desirable, independent of the other approaches, and can be an effective way to monitor developments.
A bank partnering with a third-party, such as a tech firm, is nothing new. In back-end partnerships, a non-bank provides technology services to a bank. In front-end partnerships, a non-bank partners with a bank to deliver banking products or services to customers.
Regulatory Accelerators (RA) are programmes enabling partnership arrangements between innovators or FinTech firms and government authorities to speed up development and innovation.
“Regulatory sandboxes” are frameworks set up by a financial sector regulator to allow small scale, live testing of innovations by private firms in a controlled environment (operating under a special exemption, allowance, or other limited, time-bound exception) under the regulator’s supervision.
“Regulatory sandboxes” may also apply the use of certain, limited (in time and scope) regulatory exceptions or derogations provided by the regulator.
Moreover, Fintech can play a strategic role in addressing the financing challenges of the sustainable development agenda including the role of Fintech in: (i) improving financial inclusion of underserved groups; (ii) building resilient infrastructure; (iii) fostering innovation.
2026 UIA Business Law Forum
Topics in current discussions on financial technologies will be object of the UIA Banking and Financial Services Law Commission panel on “Tech Meets Banking and Finance” at the “17th UIA Annual Business Law Forum”, that will take place in Zurich (Switzerland) from June 04 to June 05, 2026. We are waiting for you!
Barbara Bandiera
President of the UIA Banking and Financial Services Law Commission
Lawyer, Milan, Italy