Banking business and appealing myths: a critical review of fintech as a panacea for competition concerns

This paper delves into the manner in which FinTech applications may address competition concerns within the EU legal framework governing commercial banks. The analysis aims to ascertain whether and how FinTech could either assist or challenge policymakers. Anchored in the findings of the 2007 Sector Inquiry Report, this chapter explores several critical questions within the context of EU regulations: (i) whether the social function of commercial banks has hindered the enforcement of competition law; (ii) whether FinTech innovations can enhance the capacity of European regulators to manage the costs and challenges associated with two-sided payment platforms; and (iii) ultimately, whether FinTech could facilitate the creditworthiness assessment and improve the analytical credit database.