Finland Creates Fintech Expert Group Expecting Sustainable Growth
The Ministry of Finance of Finland has decided it would be beneficial to better understand emerging financial technologies: IE Fintech.
In reaction to these emerging innovations, the Ministry has set up a group of experts to monitor and enhance the conditions in which financial services technologies can evolve. The group’s coordinator is Ministerial Adviser Miki Kuusinen. The group will seek to help bring about a diverse financial services ecosystem and improve the competitiveness of the Finnish financial markets.
Finland’s Ministry of Finance has published an update on the nascent Finish crowdfunding industry. According to their report, Finland’s crowdfunding market more than doubled in size during 2016.
Coat of Arms - FinlandThe Finish government estimates the total amount raised during 2016 stands at €153 million in contrast to the year prior (€70.5 million) the amount has more than doubled. Two years ago the market stood at €52 million
The government says the growth in investment-based and loan-based crowdfunding, which are important forms of funding for businesses, has been particularly rapid.
The Finnish crowdfunding market in 2016 is summarised as follows:
Investment-based crowdfunding: € 41.3 million (year-on-year increase of 184%)
Loan-based crowdfunding for businesses: € 39.9 million (year-on-year increase of 92%)
Peer-to-peer lending between private individuals: € 71.3 million (year-on-year increase of 106%)
Reward-based crowdfunding: € 846,000 (year-on-year increase of 32%).
The Ministry of Finance has completed a survey on crowdfunding annually among the market operators since 2014. Officials said the survey has reached the majority of crowdfunding intermediaries operating in the Finnish market.
The Ministry of Finance predicted the crowdfunding market would grow further. Factors contributing to this growth include the new Crowdfunding Act, which clarifies the rights and obligations of both market operators and investors. The Act places loan-based and investment-based crowdfunding within the sphere of regulated financial markets.
Factors contributing to this growth include the new Crowdfunding Act, which clarifies the rights and obligations of both market operators and investors.
The Act places loan-based and investment-based crowdfunding within the realm of regulated financial markets.
The Ministry believes widespread adoption of Fintech may lead to a major transformation of today’s financial markets. In brief, Fintech will more effectively enable the adoption of new ways of acquiring and transmitting funding (one example is crowdfunding) and new payment methods, and will give rise to new business activity in association with these.
The Ministry envisions services provided using Fintech to reduce costs, improve efficiency and transaction speed, diversify financial markets and increase competition. Fintech may also bring significant new challenges especially for public authorities and particularly in terms of ensuring financial stability and uninterrupted business on the financial markets.