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Regulatory barriers for fintech companies in Central and Eastern Europe

Author

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  • Albulena SHALA

    (University of Prishtina “Hasan Prishtinaâ€)

  • Rezearta PERRI

    (University of Tirana)

Abstract

Fintech is the delivery of financial products and services to consumers using a combination of innovation and technology. Fintech offers new solutions that have the potential to replace traditional banking operations. The paper presents, as the first contribution of its kind, a summary of the legislation and innovation facilitators provided by Central and Eastern European (CEE) countries for fintech companies. The purpose of this paper is to identify the barriers and challenges created for fintech companies by the current legislation. Another goal is to see how the regulatory environment adapts to the challenges presented by these technology-based companies operating in the financial and banking sectors. Using a comparative analysis, the most progressive countries regarding the preparation of legislation and the facilities that they create for fintech companies are Estonia, Lithuania, and the Republic of Slovakia. The least developed countries in terms of legislation and facilities for fintech companies are Albania, Bosnia and Herzegovina, Kosovo, and Serbia. Regulators in some Central and Eastern European countries have created Regulatory Sandboxes and Innovation Offices, but fintech companies face many challenges, such as a lack of regulations, the prohibition of fintech companies' activities, and the existence of two different regulators.

Suggested Citation

  • Albulena SHALA & Rezearta PERRI, 2022. "Regulatory barriers for fintech companies in Central and Eastern Europe," Eastern Journal of European Studies, Centre for European Studies, Alexandru Ioan Cuza University, vol. 13, pages 292-316, December.
    • Handle: RePEc:jes:journl:y:2022:v:13:p:292-316
    DOI: https://doi.org/10.47743/ejes-2022-0214
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    References listed on IDEAS

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    4. Ion MICU & Alexandra MICU, 2016. "Financial Technology (Fintech) And Its Implementation On The Romanian Non-Banking Capital Market," SEA - Practical Application of Science, Romanian Foundation for Business Intelligence, Editorial Department, issue 11, pages 379-384, July.
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    Cited by:

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