The truth is that large banks are already working so that a good part of their business is managed through mobile applications. This will undoubtedly affect your way of relating to all activities that involve payment and collection transactions.
What happens then with electronic money? In this post we will reveal the current situation of this financial payment system.
Electronic money is a real substitute for coins and banknotes, stored in an electronic device in order to always be able to operate with it in digital environments. There are already many financial-technological (Fintech) companies that have developed payment, investment, financing, insurance solutions, etc., taking advantage of the spectacular advance of new technologies and the improvement of personal identification systems.
But are they regulated? Are they safe? The truth is that there is a lack of regulation and this limits, in part, its development.
On the other hand, there is traditional banking that demands the same regulatory treatment for the growth of the sector that they cannot pass up. Due to this, there are already many banking entities that acquire fintech companies or reach agreements with them in order not to lose market share.
And at the midpoint of this environment are the Electronic Money Entities (EDE) such as, capable of providing the necessary regulation to fintech companies since they are supervised by the central bank (Bank of Spain in our case) having obtained the mandatory banking license to issue and process electronic money. This is known as RAAS (Regulatory As A Service) Regulation as a Service.
To all this must be added the importance of security. Being under the watchful eye of the Bank of Spain, they must comply with strict regulatory standards (own resources, money laundering, operational risks, etc.) and comply with the highest standards in terms of computer security. You could say that EDEs are 100% safe.
Electronic money is already a reality and regulation is necessary so that all operations are secure and an adequate user experience can be guaranteed from all areas, relationship and transactional. It is, therefore, the Electronic Money Entities such that allow this emerging sector to develop under the best possible framework.