Intermediaries’ Model in Banking and Finance and the Treatment of Fintech in the European Union: A Critical Approach

Intermediation has become a major phenomenon. Major companies are acting as intermediaries between businesses and clients. European financial and banking legislation has been built around intermediaries, such as credit institutions or investment firms. It helps to control and supervise the main actors of these industries, in order to protect the markets and the clients. The development of the internet and the blockchain technology has brought changes, with crowdfunding or virtual currencies emerging. They offer individuals the means to avoid professional intermediaries, allowing for more freedom but increasing systemic risk. Reaction of the European Union to such innovations is multiple and pragmatic. The goal of this chapter is to analyze the situation and offer a critical approach to this intense European legislation activity.