BNY Mellon’s top executive sees huge potential in blockchain technology and believes that it could help integrate Europe’s financial markets.

Niamh de Niese, Head of EMEA Innovation Centre, BNY Mellon, lists blockchain, regulation and Brexit as the top three drivers of the European FinTech market in the next 12 months. According to her, these three themes could be referenced to explain what is meant by “reimagining the future of finance”.

“Blockchain interests me hugely, particularly its potential role in accelerating the implementation of the European Commission’s proposed Capital Markets Union project”, de Niese said. “Blockchain could, for example, be a catalyst for greater integration of Europe’s financial markets by helping break down some of the long-standing barriers to cross-border investment; unlocking access for small and medium sized businesses (SMEs) across Europe to new avenues of capital”.

She said that the technology has the potential to stimulate economic growth across Europe, create new jobs, as well as lower costs and make the financial system more resilient. 

Speaking of regulation, De Niese said that BNY Mellon’s EMEA IC is currently engaged with two important EU regulatory projects, MiFID II and PSD2 (Second Payment Services Directive), exploring ways to leverage its technology platform, NEXEN, and FinTech services to efficiently fulfill regulatory obligations and reduce compliance costs both for BNY Mellon and its clients. 

She noted that “Brexit” is more of a theme for FinTechs in the UK than the rest of Europe. De Niese said it is too early to speculate on the precise outcomes of the upcoming Brexit negotiations, but pointed out that the potential loss of passporting and possible restrictions on the free movement of people could pose challenges – both for established FinTechs based in Britain who want to attract talent from the Eurozone, and EU FinTech entrepreneurs looking to launch an idea and choosing their ‘home’ location.

“As we know, Amsterdam, Stockholm and Berlin, to name a few, are established and popular FinTech hubs which could, in theory, prove more attractive than London post Brexit. But I don’t foresee anyone making rash decisions and changes in the next 12 months”, she added.

BNY Mellon opened its eighth fintech innovation centre in Singapore in November 2016. More recently, it created a Global Innovation Group in its Treasury Services business in a bid to secure its position as a leader in incorporating new ideas and technologies that bring the best possible service to its clients.