HANFA establishes regulatory Innovation Hub

Published: 6 May 2019

The Croatian Financial Services Supervisory Agency (HANFA) has established a regulatory Innovation Hub consisting of a specialized team dedicated to the issue of financial innovation (FinTech) regulation.

“The establishment of the Innovation Hub reflects our efforts to make HANFA a propulsive regulatory authority keeping up with the times. Technological solutions in the financial industry, manners of raising capital, market structure and approach to consumers are continuously evolving at great speed, therefore regulators need to be equally fast and flexible, as well as to monitor market innovations.” – said Ante Žigman, president of the Board.

Innovation Hub will be the point where innovative projects in the field of financial services will be able to obtain informal support, advice or guidelines in order to understand their position within the regulatory framework and to determine regulatory, supervisory and legal issues that are of significance to the project.

The main functions of the regulatory Innovation Hub will be as follows: to support the development of innovative projects, to reduce the time needed for such projects to enter the market, to lessen regulatory uncertainty, to facilitate communication with HANFA by creating a special contact point and thus enable faster, simpler and individual access for entities whose projects fulfil the required conditions. Innovation Hub will be an active catalyst in promoting improved and more efficient communication between the financial industry and innovative technological solutions, research, development and society economic needs.

Innovation Hub will play an active role in HANFA’s collaboration with the existing entities, technological services providers, start-ups and other stake-holders in business ventures that use or want to use innovative solutions in the field of non-banking financial services.

A project seeking the Innovation Hub support must be innovative, beneficial to investors and at least in the initial phase of development. The type of support that HANFA will offer to business entities is, first and foremost, helping them find the optimal position for their project in the increasingly complex regulatory environment, including the European Union (EU) legislation.

Since 2013, Croatia has been a member of the European Union therefore it has fully complied with the EU legislation. This gives domestic business projects the freedom to provide services in the entire EU.

HANFA is inviting entities involved in the development of innovative technological solutions in the financial industry (FinTech, InsureTech or RegTech) to contact the Innovation Hub in order to obtain more information about the position of their project within the regulatory framework. In addition, the Innovation Hub representatives will gladly respond to invitations to participate in presentations, round tables and debates in connection with FinTech topics.

HANFA website contains all the information about the Innovation Hub and the ways to contact it.

Glossary of terms:

In the broadest sense, the term FinTech means the use of new technologies in financial services. Correspondingly, if the use of new technologies is placed into a regulatory context, the term RegTech is used, while in the context of insurance, the term InsurTech is used. FinTech has the broadest meaning among all these terms, and therefore it is used most often.