Project name: Feasibility study on innovative technological solutions in the Polish financial market and identification of any legal, regulatory and supervisory impediments to its use, especially regarding DLT and RegTech (#FinTech) & sandbox

Scope of support: During the third round of the application procedure under the Structural Reform Support Programme, the Polish Financial Supervision Authority and the Ministry of Finance received support from the European Commission for the further development of FinTech in Poland. 

The purpose of the project Feasibility study on innovative technological solutions in the Polish financial market and identification of any legal, regulatory and supervisory impediments to its use, especially regarding DLT and RegTech (#FinTech) & sandbox was to establish legal and technological framework for the development of the FinTech sector in Poland by introducing appropriate regulatory and supervisory changes. 

The project was implemented by the European Bank for Reconstruction and Development (EBRD) and carried out by experts in law and technology hired under a contract by the EBRD with a consortium of private entities.

The beneficiaries of the project were the Ministry of Finance and the UKNF, and the project involved formulation of objectives for the development of the FinTech market in Poland, a recommendation on the model of the Regulatory Sandbox, and recommendations on the implementation of SupTech solutions to strengthen the effectiveness of the existing supervisory processes and functions.The project activities were carried out concurrently in three thematic areas: ‘FinTech’, ‘Sandbox’, and ‘SupTech.’

The main area of support in the project part dedicated to the UKNF was the assessment of possibilities for implementing a Regulatory Sandbox in Poland based on the supervisory mechanisms existing in other countries and the preparation of draft amendments to the Polish law and the evaluation and guidance as part of the analysis of feasibility of application of innovative technologies at an institution responsible for financial supervision.

The scope of activities planned under component 2 of the project in the areas ‘Sandbox’ and ‘SupTech’ included:

• review of laws, supervisory solutions, mechanisms and practices existing in other countries which could support the development of FinTech in Poland, and the recommendations to be applied in Poland, in particular on the application of a Regulatory Sandbox in Poland;
• assessment of possibility for applying innovative technologies as part of the supervisory structure, such as artificial intelligence and distributed ledgers, to improve the existing supervisory functions, and proposals on the recommendations on SupTech solutions to strengthen and develop the Polish FinTech sector. 

The project activities were carried out in 21 months and completed in September 2021.

The project was financed from the funds of the European Commission as part of the third application round of the Structural Reform Support Programme.

Contact:

Joanna Lipowczan
e-mail: joanna.lipowczan@knf.gov.pl