Financial Crime World

Belgium’s Fintech Sector Continues to Thrive Despite Global Challenges

Belgium has established itself as a hub for financial services and technology, with critical market infrastructure players like Swift and Euroclear based in Brussels. The FinTech sector has grown exponentially since the mid-2010s, driven by innovations in alternative financing, payments, and automated investment solutions.

Characteristics of the Belgian Fintech Ecosystem

  • Close collaboration between traditional banks and FinTech companies
  • Many FinTech companies focus on B2B services to reduce client acquisition costs
  • Non-profit organizations like FinTech Belgium and PayBelgium represent and promote the sector’s interests

Regulatory Oversight in Belgium

Belgian regulatory oversight is primarily based on EU directives, with a maximum harmonization approach taken by the Belgian legislature. This ensures that financial legislation is similar across European jurisdictions, facilitating passporting of licenses obtained in Belgium to other EU countries.

Primary Regulators for FinTech Companies in Belgium

  • National Bank of Belgium (NBB)
  • Financial Services and Markets Authority (FSMA)

The NBB and FSMA are known for being firm but pragmatic, open to innovation, and tech-savvy. While supervision has become stricter over the years, both regulators are committed to supporting the growth of the FinTech sector.

Belgium Remains an Attractive Destination for FinTech Companies

Despite global economic challenges, Belgium remains a highly attractive destination for FinTech companies from around the world. The sector is expected to continue growing in the coming years, driven by:

  • A highly skilled workforce
  • Central location
  • Professional regulators who accept interacting in English

Government Support for Fintech Development

The Belgian government has recognized the importance of FinTech and has set up initiatives to support its development. For instance, the FPS Economy has been working on creating a favorable regulatory environment for digital financial services.

Conclusion

Belgium’s FinTech sector is poised for continued growth and success, driven by a supportive ecosystem, innovative companies, and professional regulators. As the global economy continues to evolve, Belgium is well-positioned to remain at the forefront of FinTech developments in Europe.