Last week, The Association for Financial Markets in Europe (AFME) published a report titled “Digital Finance in the EU – Priorities for fostering resilient, innovative and competitive financial markets”, presenting its recommendations for supporting the development of capital markets and increased access to finance for the real economy through new technologies.

The report focuses on the following main areas:

• Unlocking the benefits of tokenisation and DLT technologies in capital markets: The development of Distributed Ledger Technology may ensure that payments, settlements, and securities lifecycle events may be carried out with greater safety and efficiency. Additionally, access to capital markets through tokenised securities or assets may be expanded to a broader set of participants.
• Supporting an effective data ecosystem: The EU’s proposed Financial Data Access framework has the potential to enhance the way banks operate, encourage innovation, and support a more effective and efficient data ecosystem.
• Promoting a secure and resilient EU digital finance sector: Work to ensure a successful and proportionate implementation of DORA will remain central in the coming months.
• Leveraging the opportunities from the use of artificial intelligence: AI has the potential to transform financial services and capital markets to make them safer, more efficient, accessible, and better tailored to consumer needs. 

Commenting on the report, Stefano Mazzocchi, Managing Director, Advocacy at AFME, said: “Banks have been at the centre of a profound digital transformation, a process which will continue and accelerate in the coming years. As the EU begins a new policy cycle, digitalisation of finance has the potential to support the development of capital markets. By increasing efficiency, lowering costs, boosting transparency and availability of information and allowing greater access to data, digital technologies can support the CMU project and allow greater access to capital markets both for entrepreneurs and institutions looking for funding, and generate returns for investors. With its digital finance strategy, the EU has been an early mover in this area and we look forward to continuing engagement and dialogue with all stakeholders to facilitate digital innovation”.

To discuss what the future of digital finance will look like as well as attending talks and networking with industry leaders, attend the Innovatrix 2nd Client Onboarding and Digital Identity Summit for Financial Institutions in Prague, Czech Republic, on September 18–19, 2024.

For more information, visit our website or email us at info@innovatrix.eu for the event agenda.

Source: AFME