A public consultation on retail financial services has been launched by the European Commission in the framework of its green paper on retail financial services called “better products, more choice, and greater opportunities for consumers and businesses”.
The Commission points out that suppliers face obstacles to offer their products to customers in other Member states. It undermines the competition in the Single market. As a solution, the Commission thinks about innovative digital technology.
Indeed, the "Know Your Customer" (KYC) requirements limit the ability to offer cross-border financial services since it includes submission of documents to verify the customer's identity. In this framework, the role of eIDAS Regulation in satisfying the requirements related to EU anti-money laundering legislation or related to strong authentication is highlighted.
The public consultation is open until 18 March 2016. The Commission is expected to publish an Action Plan on Retail Financial Services by summer 2016.