Banking and financial digital platforms: conflict of laws issues from a European perspective

Advances in technologies, such as enhanced computing power, cryptography and artificial intelligence, are transforming the way banking and financial servic- es are provided. On the one hand, disruptive disintermediation-enabling tech- nology, belonging to alternative finance forms, is challenging traditional bank- ing intermediaries’ role. On the other hand, new intermediaries, whose activities have not traditionally encompassed finance, such as social media companies, are being drawn into the financial industry. Moreover, increased internet speed and easier mobile access are giving rise to rapid growth in the use of banking and financial digital platforms, in particular among consumers, start-ups, SMEs and social enterprises. This trend is also expected to accelerate, as digital platforms reduce costs, facilitate access to financial products and services, and enhance cross-border operations. However, as a consequence, new private international law problems are emerging along with the widespread use of digital platforms. Against this background, this paper, which is informed by a doctrinal legal methodology, addresses the emerging conflict of laws issues European users of banking and financial digital platforms face. For this purpose, it will first set the scene of the relevant EU legal framework in relation to banking and finan- cial digital platforms, categorized, on the basis of the function they perform, as follows: (i) lending and financing fintech platforms, including balance-sheet lending and crowdfunding platforms; (ii) robo advice and algorithmic trading platforms; (iii) digital payment services and e-money; (iv) financial services re- lated to crypto assets. On the basis of the analysis provided, it will finally focus on the forum and applicable law issues faced by European users of banking and financial digital platforms.