EU watchdogs call for rapid action to catch up with digital finance

LONDON, Feb 7 (Reuters) – Swift action is needed to update the way cross-border financial services are scrutinized and consumers protected as the sector goes digital with ‘Big Tech’ playing an increased role, people said on Monday. European Union regulators.

People are using smartphones to buy and sell stocks, move money into bank accounts and make payments, a trend accelerated by the COVID-19 pandemic, leaving regulators to catch up.

“Digital finance has unlocked new synergies between financial and non-financial activities that potentially introduce systemic risk to the financial services market,” says a joint report from EU banking, insurance and market watchdogs .

Cloud computing, or banks and other financial firms using outsourced service providers, is booming, according to the report.

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Reporting by Huw Jones; Editing by Toby Chopra

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