Bank of France Governor predicts growth in fintech sector
Governor of the Bank of France, François Villeroy de Galhau, announced that fundraising for financial technology firms in France is expected to increase early next year.
This optimistic outlook comes as the European Central Bank’s (ECB) reduced borrowing costs have lowered financing expenses.
Speaking at the Forum Fintech conference in Paris, Villeroy highlighted that investment in the fintech sector reached €560 million ($612 million) in the first half of 2024, nearly matching the €568 million recorded during the same period last year.
He attributed this stabilisation to recent changes in monetary policy, noting that the ECB’s last interest rate hike was in September 2023, followed by two 25 basis point cuts in June and September 2024 due to declining inflation.
“The first half of the year could therefore mark an inflection point and presage a resumption of growth in the Fintech ecosystem,” Villeroy stated.
He also mentioned an increase in new projects submitted to France’s Prudential Supervision and Resolution Authority (ACPR), which he chairs.
Additionally, Villeroy indicated that the ACPR is prepared to oversee artificial intelligence systems in the financial sector, particularly those used for credit scoring. He emphasised the strong synergies between supervising these AI systems and the prudential supervision of banks and insurance companies.
Villeroy refrained from commenting further on monetary policy due to the silent period before the ECB’s upcoming policy meeting on Thursday.
This announcement underscores the Bank of France’s commitment to fostering innovation and stability within the fintech sector, signalling a potentially vibrant future for financial technology in the country.
Attribution: Bloomberg
Subediting: M. S. Salama
