1. Digital finance
In the framework of the EU’s cloud & data policies
Witte Wijsmuller, Cloud & Software Unit, DG CONNECT
24 November 2020
2. • Ensure that innovative firms can scale up;
• Support the uptake of new technologies;
• Enhance security and integrity of the financial sector;
EC Fintech Objectives
Tools:
=> Fintech Taskforce
=> Legislative and non-legislative initiatives by the COM,
including preparatory work (ESAs advice; Expert Group)
3. Cloud: a key strategic asset for digital
finance
… and the data economy at large
Cost efficiency –
boost innovation
Handle the ‘Data
Tsunami’
Enable Common
Data Spaces
Unlock access to
Emerging
Technologies
Build Data
Leadership
4. New opportunities emerge …
• Edge computing In 2025, 80% of the data
processing activities will take place at the edge of
the network
• SaaS solutions Its revenue growth rate is
expected to be at 48,1% between 2019 and 2021.
(In 2019, software security, as a SaaS application,
contributed EUR 115.5 million to total SaaS
revenues within the EU market)
• Resilient cloud federation ecosystems emerge
in Europe
• Large untapped potential of increased data
sharing.
6. 1) Assymetries in bargaining
power between financial
institutions and hyperscale
cloud providers
2) Vendor lock-in
Challenges: rationale for public intervention (I)
7. Challenges: rationale for public intervention (II)
3) Operational resilience
• Cyber threats
• Concentration risk
• Financial stability
4) Data breaches
• Sensitive commercial data
• Personal data
8. 5) Tech & data sovereignty
Challenges: rationale for public intervention (III)
10. Solutions (I):
The EU Cloud Rulebook
sector-agnostic
✓Applicable legislative framework: (GDPR, Free Flow of Non-personal Data
Regulation, NIS Directive, European Cybersecurity Act)
✓Data protection Codes of Conduct
✓Security (Future EU cloud security certification scheme)
✓Portability (SWIPO Codes of Conduct)
✓Energy efficiency (e.g. EU Code of Conduct on energy-efficient data
centres)
11. Solutions (II):
Digital Operational Resilience Act Proposal
(financial) sector-specific
Regulation
• Further harmonisation & streamlining
existing (limited) rules on ICT risk
management and ICT-related
incident reporting;
• New bespoke rules on digital testing,
information sharing and
management of ICT third-party risk,
including an Oversight framework to
monitor digital risk of critical ICT third
party service providers.
Directive
• Amendments to financial services
directives to introduce cross-
references to the Regulation and
update empowerments for technical
standards.
12. Solutions (III):
Co-Investing in strategic EU cloud
infrastructure and services
To create a commercial offering of next generation of
secure, interoperable, sustainable and trusted cloud
to edge computing capacities in the European Union.
Direct
EU
funding:
2 bn EUR
Member
States
Industry
Invest EU
DEP, CEF2,
Horizon
Europe…
Recovery Plan for
Europe: 150
BILLION EUR FOR
DIGITAL
13. Commissioner Thierry Breton
“The winners of yesterday might not be the winners of
tomorrow when it comes to industrial data. Because the
platforms we know are not ready to meet the technical,
security and service requirements required by industry or
public authorities.
To be ahead of the curve, we need to develop suitable
European infrastructures allowing the storage, the use,
and the creation of data-based applications or Artificial
Intelligence services
That is why the Commission plans to launch a European
Alliance for Industrial Data and Clouds in order to
develop European alternatives and put ourselves at the
top of the race in the data economy.”
14. European Data Spaces
Standards & interoperability, data access tools, data quality and verification technologies,
advanced data processing at the core and edge, data governance (contracts, licenses)
Public High
Value
Datasets
AgricultureManufacturing Mobility HealthEnvironmentFinance Energy
IaaS (Infrastructure as a Service)
Servers, computing, OS, storage, network
PaaS (Platforms as a Service)
Middleware, web services and databases
SaaS (Software as a Service)
Software, ERP, CRM, data analytics
Marketplace for Cloud to Edge based Services
Cloud services meeting high requirements for data protection, security, portability, interoperability, energy efficiency
Public
administration
Federation of Cloud
Infrastructure & Services
Cloud stack management and
multi-cloud / hybrid cloud, cloud
governance
(contract, rulebook)
Edge
Infrastructure
& Services
High-
Performance
Computing
Launching in December:
European Alliance for industrial data and cloud
Private sector Public interest
