What is an Innovation Hub?
An Innovation Hub is a platform, provided by the regulatory authority, to facilitate the innovation of the financial intermediator sector. Market participants can get guidance from the regulatory authority on how they can operate their innovative solution in the current economic environment. The Innovation Hub is open to both newly established FinTech firms and incumbent institutions already licenced (e.g. banks, insurers, financial firms, investment firms). In the Innovation Hub, market participants can get information on regulatory requirements related to their developed innovative solution, and FinTech firms without licence can get assistance in the licensing process.
The role of regulatory authorities
Based on international practices, the aim of the Innovation Hub is to facilitate innovative financial solutions, and to offer regulatory guidance and assistance in the licensing process. The communication is primarily online, additionally, the opportunity to personal consultation is provided. Within the Innovation Hub, the expert staff of the regulatory authority answer the questions of the institutions related to financial innovation feasibility, assist in the understanding the legal environment, and identify legislative amendments needed to enable the spread of more efficient financial services. Moreover, an Innovation Hub can facilitate information exchange between market participants.
MNB Innovation Hub
Through its information repository, communication hub and regulatory support platform the MNB Innovation Hub helps to identify actually arising legal obstacles and to improve feasibility of innovative ideas. The online platform provides connection between the regulatory and supervisory authority and the innovative domestic institutions (FinTech firms, banks, insurers, etc.), and supports the awareness of international best practices.
Innovation and Stability - Overview of FinTech in Hungary
In order to get to know market needs, the MNB assessed the attitudes of consumers, market participants and potential investors towards FinTech innovations in the second part of 2017. Furthermore, the Bank examined the regulatory opportunities to secure enhancement of innovations, and the related international practices. To introduce the market processes related to FinTech innovations, and the Bank's assessment, the MNB prepared a consultation document which could be commented by market participants until 31 January 2018.