FinTech: data and data collection challenges

Abstract

Financial market statistics are a key source of information for central banks to perform their duties. It is therefore critical that, over time, the quality of the statistics remains high and that they are sufficiently complete. Changes in the financial sector, such as those observed as a result of digitalisation, might affect the usefulness and representativeness of the more traditional sources of information. Accordingly, the phenomenon needs to be measured and its implications assessed. However, in Spain there is currently no official register containing the total population of FinTech firms. Consequently, the Banco de España is demarcating this ecosystem for statistical purposes, identifying, by activity and by some of their basic characteristics, the various types of firm operating within it. From the findings it may be concluded that, for the time being, the FinTech sector is comparatively very small relative to the financial sector as a whole. However, the momentum and potential attendant data gaps make ongoing monitoring of this activity necessary. This will benefit from close cooperation with the industry, as well as with other authorities.