FCA chiefs have reiterated their desire today to tear down the obstacles blocking the path for finance firms wanting to use digital and mobile technology to innovate.

Professionals have been asked to tell the regulator which specific rules and policies are restricting innovation.

A call for input has been launched asking what other rules should be introduced to aid new creative ideas.

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The FCA said in a statement today: “One of the FCA’s operational objectives is to promote effective competition in the interests of consumers. Innovations often drive effective competition.

“In 2014 we launched Project Innovate to ensure that our regulatory regime supports the development of innovative products and services that can improve the lives of consumers.

“Regulatory barriers, both in the UK and at EU level, can distort competition and discourage new entrants to the market denying consumers the benefits of both new services or improved services from current providers.

“Project Innovate seeks to identify barriers to innovation and work to resolve these without compromising the standards of consumer protection.”

Through the FCA’s Innovation Hub project and across the wider FCA, officials reported firms planning to use, for example, distributed ledgers and digital currencies, aggregator services, cloud-based services, big data analytics, biometric banking, and cognitive computing.

Developments already on the market or about to be introduced that take advantage of digital technologies were cited including:

 biometric readers for banking authentication

 automated advice services

 payment protocols based on decentralised ledgers to enable global financial transactions and other alternatives for making international payments

 a box in a car transmitting driving data to help reduce car insurance renewal premiums

Questions

Question 1: What are the specific rules or policies that cause barriers to innovation in digital and mobile solutions for financial services (products or processes)? Please provide examples of when these rules or policies have stifled development and what was the impact (e.g. delay, abandonment of project, economic impact).

Question 2: Are there any rules or policies that should be introduced to facilitate innovation in digital and mobile solutions for financial services (products or processes)? Please provide examples of when the absence of these rules or policies has stifled development and what was the impact (e.g. delay, abandonment of project, economic impact).

The FCA’s consultation runs up until 7 September and responses can be e-mailed to This email address is being protected from spambots. You need JavaScript enabled to view it. with the subject title Call for Input: Regulatory barriers to innovation in digital and mobile solutions.