ERFF: European Retail Financial Forum
RFS Spotlight October 2018
|
|
|
Monthly EU Retail Financial Services update
Since its launch in October 2015, ERFF has been bringing together business, consumers and EU policymakers through workshops and events to seek consensus on value-added ways to open up EU retail financial services (RFS) markets. ERFF’s RFS Spotlight brings you news on EU RFS policy, events, and creating benefits for customers and industry.
EESC ERFF conference 'Consumers at the heart of finance in Europe'
On 26th September 2018, ERFF and the European Economic and Social Committee (EESC) held a joint high-level conference at the EESC in Brussels, to discuss progress on putting consumers at the heart of retail financial services in Europe. Kindly hosted by Ariane Rodert, President of the Section for Single Market, Production and Consumption, EESC, the event attracted nearly 70 participants and speakers representing consumers, policy makers and the industry. MEP Othmar Karas, Member of the Economic and Monetary Affairs Committee (ECON), and Renatas Mazeika, Head of Unit, Consumer Policy, DG JUST, European Commission, gave keynote speeches.
 
Photos: Ariane Rodert, EESC, MEP Karas (left); Carlos Trias Pinto EESC, Ariane Rodert EESC, MEP Karas, Michael Ikrath, EESC and Fiona Murray, ERFF, secretary general (right)
Focused on the three EC Action Plans on Consumer Financial Services, FinTech and Sustainable Finance, the conference discussed progress on the actions and what more needs to be done. There was widespread recognition of the positive steps already taken, such as in payments (PSD2) and the reduction of fees for cross-border transactions with non-Euro Member States.
In his keynote, Renatas Mazeika noted that PSD2 has simplified payments for many consumers and that sustainable finance has the potential to put consumers centre stage in the shift to renewables. He called on banks to embrace change, and for banks and borrowers to contribute to sustainability and social well-being.
Innovation was a big theme throughout. One bank mentioned that 70% of their customers now interact via smartphones, and MEP Karas and the Commission speakers stressed the importance of delivering the benefits of digitalisation and encouraging Member States and supervisors to bring its advantages to consumers, while also ensuring proper safeguards and protection are in place.
The second panel session showed that sustainable finance has the power to strike a chord with consumers – quoting a recent survey, one speaker noted that 71% of investors want their personal values to be reflected in their investments, and there is growing consumer interest in investing for social, ethical and environmental good. The Commission is already starting work on a taxonomy and labelling for 'green' investments aiming to have the full taxonomy ready by the end of 2022. The challenge will be to make the labelling credible and easy to understand.
Indeed, many speakers stressed that consumer confidence in the financial sector has still a way to go. The financial crisis hit trust hard, and many EU citizens remain to be convinced that they really are ‘at the heart’ of retail financial services. Today, issues such as digital security and privacy are major concerns; as many as 70% of citizens do not want their data to be shared with third parties, according to one study quoted. What was agreed is that consumers want more transparency and clarity, so they can understand and trust retail financial products particularly mortgages, investments and pensions that have life-long implications.
There were also calls for political action - to advance further on Economic and Monetary Union, to ensure wider EU policy and budgets are aligned with sustainable finance goals (which serve should long-term goals), and to communicate more effectively about the benefits the EU brings to its citizens in retail financial services.
You can see more photos of the event on the ERFF website and also on the EESC website.
Meanwhile…
In his State of the EU speech on 12 September, Commission President Jean-Claude Juncker announced that the Commission is proposing stronger anti-money laundering measures to address concerns that existing rules are not fully supervised and enforced. Specifically, the proposed amendment targets the Regulation establishing the European Banking Authority (EBA), reinforcing the role of the EBA in anti-money laundering supervision of the financial sector.
Martin Špolc, head of the CMU unit in DG FISMA, recently shared his impressions of his visit to the US in early September to discuss the Commission's sustainable finance strategy. In the EC’s Finance Newsletter, he talks about the EU’s leadership in this domain, and reactions from Al Gore, and Unilever’s Paul Polman among others – read the article.
A few things from consumer organisations you might have missed over the summer. BEUC introduced a ‘price of bad advice’ map charting how mis-selling scandals that have affected consumers across Europe in the last twenty years. And at the start of September, Better Finance issued a press release looking at consumer attitudes to investments for sustainability. Among the points raised, Better Finance calls on the financial industry and EU regulators to “adjust their goals, metrics and disclosure requirements to the mostly long-term horizon of EU savers and investors”.
From the Commission, DG FISMA added to its online backgrounders with a detailed look at the benefits and challenges of outsourcing data storage and processing to the cloud.
Coming up…
4th December 2018 - ERFF Techncial Workshop hosted by MEP Danuta Hübner, at the EP
Impact of Brexit on consumers in retail financial services
Discussion of issues and potential solutions in areas such as contract continuity for retail investment contracts, including implications and impact for consumers/citizens e.g. their savings, pensions – both in the UK and in the EU cross-border.
If you are interested in the possibility of attending, please contact us at info@erff.eu
About ERFF
The European Retail Financial Forum (ERFF) brings together, through workshops and events, consumers, business and policymakers to support the opening up of retail financial markets in Europe. Representing all aspects of the retail sector – traditional, wider investment and digital – we are consumer-focused, favour removing key barriers, and increasing choice and transparency for all in ways that keep Europe competitive.
For further information, please contact us at: info@erff.eu
ERFF Secretariat
|
|
|
|
