Regulation Shifts Focus Toward Interoperable Financial Infrastructure

Regulation in financial infrastructure is quietly reshaping the European market, not through a single breakthrough technology, but rather by a shift in how regulators and institutions communicate with each other. According to Liliana Fratini Passi, Managing Director of CBI, this change in perspective has moved from skepticism to acceptance.

Market maturity has evolved significantly, with institutions now viewing regulatory compliance as an integral part of their operational backbone, rather than a mere box-ticking exercise. This transformation is crucial, as it signals that banks and fintechs are treating rules as infrastructure rather than friction.

The pace of adoption for new frameworks tends to accelerate when regulations are viewed in this way. Smarter regulation is directly speeding up the modernization of financial infrastructure, particularly when it comes to interoperability between systems and providers. Interoperability has become a key test of whether new rules actually work, as seamless communication between systems leads to a smoother experience for users and reduced duplicated infrastructure for institutions.

PSD3, PSR, FIDS, and the digital euro are cited as examples of how regulation in financial infrastructure is providing clarity within an otherwise complicated environment. These frameworks offer a set of reference points that reduce ambiguity for institutions navigating overlapping rulebooks, particularly when operating across multiple EU jurisdictions. Clarity at the regulatory level translates into faster technical decision-making further down the chain.