The e-book covers key technological trends shaping the financial industry – what are the most significant perspectives highlighted in this edition?
This year’s e-book covers a variety of technological trends, from mainly two perspectives – which align with the two parts in which the publication is organised. In Part I, authored primarily by our internal scientific team, we focus on those technological innovations that have been “incrementally” shaping the industry for the last two decades. The authors of the first chapter show that the number of so-called fintech startups in the EMEA region has grown faster than in other regions but also that the EMEA’s overall share still lags behind that of the Americas. Figures in the chapter also highlight how, while digital payments were the low-hanging fruit of a first generation of fintechs, still to this day they represent the key entry point into digital finance – they attract by far the largest share of venture capital funding and users. This is a key consideration as Europe aims to push further digitalisation of financial services by evolving its open banking ecosystem into an open finance one. Another important trend that emerges in this chapter is the growing use of these technologies on the public side, especially by supervisors. These are increasingly using the same technologies as the industry to perform better micro and macroprudential activities. The bottom line is that it is no longer realistic for supervisors to continue performing their role effectively without keeping up with the technological advances the industry they supervise is experiencing. Technology is thus becoming fundamental to continue fulfilling their mandate.
In Part II, we look instead at the most “disruptive” change in recent times: the advent of Artificial Intelligence and its impact on the financial industry. The section is fully dedicated to this technological trend and features a mix of authors from the EU Supervisory Digital Finance Academy (EU-SDFA) network, both academics and institutional. It covers it from three key perspectives: the industry (i.e., how AI is changing business models), the regulators/policymakers (i.e., how it is promoted and regulated in the EU and worldwide), and the supervisors (i.e., AI’s potential and current use by supervisory national competent authorities). All in all, I believe this e-book provides a comprehensive view of both where digital finance is coming from and where it is headed.
Can you describe the editorial process for selecting the topics and contributions included in this edition?
The first aspect to underline is that, like much of the EU-SDFA activities, this e-book is the result of a 360-degree collaboration with the European Commission’s SG Reform and our partners, the European Supervisory Authorities (EBA, EIOPA, ESMA). The focus of the e-book and all chapters’ topics emerged from fruitful brainstorming with them. More specifically, the idea was to leverage a mix of perspectives to achieve two objectives: provide an update on the main technological and regulatory developments within European digital finance (Part I); and deep dive on a thematic area, in this case AI (Part II). Within this structure, we then aimed to bring on board a diverse and multidisciplinary set of contributors.
One recurrent theme we hear within the Academy is that supervision is becoming increasingly multifaceted. We thus wanted to reflect this in a publication that speaks to the increasingly complex challenges actors, including supervisors, face in this industry. Readers will then find contributions from economists, lawyers, but also practitioners, policymakers, and international organisations from all over Europe. In doing so, this e-book does not aim to be comprehensive on each single topic but rather to offer a wide range of reflections on the main aspects as well as additional references for those who want to investigate these themes more in depth.
What is the EU Supervisory Digital Finance Academy, and how is EUI contributing to creating a common European culture of digital finance supervision?
The EU Supervisory Digital Finance Academy (EU-SDFA) is a major European initiative aimed at equipping financial supervisory authorities across the EU with the skills and knowledge needed to manage the challenges and opportunities of digital transformation in the financial sector. Launched in 2022 by the European Commission’s DG/SG REFORM, in collaboration with the European Supervisory Authorities (EBA, ESMA, and EIOPA) and the Florence School of Banking and Finance at the European University Institute, the EU-SDFA has become a pillar of the EU’s broader Digital Finance Strategy. The Academy provides a comprehensive, policy-oriented training programme tailored to the needs of supervisors from national competent authorities across the EU as well as creates original content on topics of digital finance. The programme includes a mix of residential training weeks, online modules, practical workshops, and peer-learning events. This diverse learning approach is designed not only to build technical expertise but also to foster open dialogue and cross-border collaboration among EU supervisors.
In this context, the EUI, through its Florence School of Banking and Finance, plays at least two important roles. First, it brings its faculty and academic expertise in EU financial regulation, innovation and technology, and finance to the Academy, ensuring the training remains academically rigorous. Second, it offers a unique platform for exchange between academics and practitioners and to facilitate peer-to-peer learning among national competent authorities. In short, the EUI’s unique contribution to the Academy is enabling this interaction between the reflective academic perspective and the insights from world of practice in the field of financial supervision. We believe this can profoundly impact the culture of financial supervision Europe can build, promoting greater supervisory convergence and thus supporting the development of a more innovative, inclusive, and resilient financial system.
Can you share any success stories or feedback from previous EU-SDFA participants on how the Academy has influenced their work in financial supervision?
The feedback we have received from many EU-SDFA participants tells us the Academy is making an impact where it should: creating knowledge but also helping supervisors create networks.
A consistent theme in participants’ testimonials is the uniquely open environment the Academy fosters, where participants feel safe and encouraged to share their experiences, challenges, and best practices. This openness not only enriches the learning experience during the sessions but also contributes to building trust and collaboration across national authorities.
One of the most rewarding outcomes we've observed is the formation of informal networks. Many participants remain in touch well after the training, sharing updates, insights, and even collaborating on projects. These ex-post spillover effects are a testament to the EU-SDFA’s role not just as a training platform, but as a catalyst for policy convergence, by fostering a more connected supervisory community across the EU.
We've also seen several colleagues from National Competent Authorities return to the Academy in a new capacity — transitioning from participants to instructors. This evolution perfectly illustrates the EU-SDFA’s peer-to-peer learning ethos, where everyone contributes to and benefits from the collective knowledge base.
And on a more personal note, many participants fondly recall their time at the EUI in Florence — we’ve often seen them capturing the stunning views from the hills, a small but memorable part of an experience that blends professional development with a sense of community and shared purpose.
Overall, the SDFA is as much about disseminating knowledge as it is about building a resilient, collaborative network of EU financial supervisors.
Lorenzo Moretti is a Research Fellow at the Florence School of Banking and Finance. He is a public policy expert with a background in academia, government, and the private sector. His expertise spans finance, digitalisation, and innovation policy. Throughout his career, Lorenzo has worked in both private and public financial institutions across the US, the UK, and Italy. In his last role, Lorenzo was policy coordinator for Italy’s Minister of Technological Innovation and Digital Transition during Mario Draghi’s government. He holds an honours degree from Brown University in economics and political science and a PhD from the University of Oxford on government venture capital in Europe.
The EU Supervisory Digital Finance Academy (EU-SDFA) is a TSI flagship initiative aimed at supporting financial supervisory authorities in coping with the risks and opportunities associated to the use of advanced technologies in the financial sector. The European Commission – SG Reform has established the Academy in cooperation with the three European Supervisory Authorities (EBA – ESMA – EIOPA) and the Florence School of Banking and Finance part of the Robert Schuman Centre of the European University Institute. The EU-SDFA encompasses comprehensive training cycles and workshops enabling the acquisition of new expertise and skills, knowledge sharing, and peer-to-peer exchanges within the financial supervisory community.
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