Insights from the First Fintech–Supervisor Dialogue in Paris
Recent European regulatory initiatives have aimed to support a more integrated financial market. Still, fintech companies and supervisory authorities often encounter practical differences in procedures, infrastructures, and expectations when engaging across borders, revealing a gap between the regulatory framework and day-to-day experience.
To help address this gap, EDFA launched Bridging Borders, a program designed to bring together fintech companies, national associations, and supervisory authorities for structured exchanges on cross-border challenges. The initiative aims to identify practical obstacles, clarify where interpretations diverge, and support progress toward a more coherent European environment.
The first session took place on 19 November in Paris, co-hosted by EDFA and France FinTech. The workshop created a space where market actors and supervisors could compare experiences openly, understand how rules function across borders, and explore the operational and legal conditions that shape the Single Market.
Cross-Border Licensing and Supervisory Divergence
A central theme throughout the conversation was the gap between the theory of cross-border licensing and its practical application. The European regulatory passport provides a strong basis for operating across the Union, yet the procedures surrounding its use continue to differ between jurisdictions.
Fintech companies expanding to new markets described encountering different procedural steps, timelines, and documentation expectations. Supervisors noted that some of these divergences stem from national legal frameworks, which coexist with EU legislation and make full alignment complex. As a result, duplicated checks, varied processing times, and differing interpretations of similar requirements remain common.
These differences also extend to anti-money laundering and customer due diligence. Onboarding processes, data collection requirements, and KYC renewal cycles often diverge, leading companies to build multiple versions of the same operational workflow. Supervisory authorities explained that national legislation, historical frameworks, and local risk assessments can influence how AML obligations are applied, even when objectives are shared.
Across this discussion, both companies and regulators recognised the value of clearer guidance, more transparent expectations, and continued exchanges aimed at reducing inconsistencies that hinder cross-border activity.
Infrastructure and Technical Fragmentation
Beyond regulatory divergence, the conversations highlighted structural and technological inconsistencies that pose challenges for both industry and supervisors.
PSD2 API performance still varies widely across Europe in terms of reliability, response times, and quality of support. Participants observed that while card system incidents typically receive rapid intervention, API-related issues do not always benefit from the same structured response. Supervisors acknowledged these imbalances and outlined ongoing efforts to strengthen monitoring and communication with banks.
Access to credit data presents similar challenges. Europe relies on more than fifty national credit bureaus and registers, each with its own mandates, data structures, and access conditions. Fintechs described the difficulty of assessing customers from other Member States without consistent data. Supervisors noted that differing national mandates continue to shape access conditions, which complicates the creation of fully interoperable systems.
Capital markets practices show similar variability. Divergent national frameworks can create operational and legal uncertainties for companies issuing or managing instruments across borders. Throughout these discussions, it became clear that operational fragmentation affects all sides and reinforces the need for greater alignment in core financial infrastructures.
Building Convergence Through Cooperation
Across the Paris session, participants underscored the importance of clearer communication, stronger coordination, and more transparent interpretation of existing rules. Improving visibility on national procedures, fostering cooperation between supervisory authorities, and exchanging good practices were all highlighted as areas where additional progress could support both innovation and regulatory objectives.
The session demonstrated that when fintech companies and supervisors discuss real operational conditions together, gaps in understanding become easier to bridge. The dialogue revealed shared challenges, common priorities, and a collective interest in creating more predictable conditions for cross-border activity.
Looking ahead, participants expressed interest in continuing this work through further sessions, with a focus on concrete operational themes and collaborative solutions. As the regulatory landscape evolves, maintaining structured exchanges will be essential for supporting the practical functioning of the Single Market.
EDFA will continue to facilitate this collaboration through the Bridging Borders program, ensuring that perspectives from across the European fintech ecosystem help inform the ongoing development of Europe’s digital finance environment.