Financial infrastructure across Europe is quietly being reshaped, not by a single breakthrough technology, but by a shift in how regulators and institutions talk to each other. That’s the core message from a recent FinextraTV interview, where Liliana Fratini Passi, Managing Director of CBI, explained why regulation in financial infrastructure is increasingly seen as an enabler of modernisation rather than an obstacle to it.
Key takeaways
- Market attitudes toward regulation have shifted from scepticism to broader acceptance.
- Smarter rules are speeding up infrastructure modernisation, especially around interoperability.
- PSD3, PSR, FIDS, and the digital euro are cited as sources of clarity in a complex regulatory landscape.
- A common legal framework is described as essential for interoperable processes, innovation, and fraud mitigation.
- The insights come from Liliana Fratini Passi, Managing Director of CBI, speaking to FinextraTV.
Shifts in Market Perception Toward Regulation
The financial sector’s relationship with regulation has changed noticeably, moving away from wariness toward genuine buy-in. According to Fratini Passi, there is a growing maturity within the market that reflects this transition from scepticism to greater acceptance.
From Skepticism to Acceptance
That evolution matters because it signals something more than compliance fatigue giving way to routine. It suggests institutions now view regulatory compliance as part of the operational backbone rather than a box-ticking exercise layered on top of it. When banks and fintechs start treating rules as infrastructure rather than friction, the pace of adoption for new frameworks tends to accelerate.
Smarter Regulation Accelerates Infrastructure Modernisation
Better-designed regulation is directly speeding up how quickly financial infrastructure gets modernised, particularly when it comes to interoperability between systems and providers. This is one of the central points raised during the FinextraTV conversation.
Focus on Interoperability
Interoperability has become the practical test of whether new rules actually work. If systems can talk to each other across borders and providers, users get a smoother experience and institutions cut down on duplicated infrastructure. Fratini Passi’s comments frame this as one of the clearest payoffs of well-targeted regulatory design.
Role of PSD3, PSR, FIDS, and the Digital Euro
Several specific frameworks were named as examples of how regulation in financial infrastructure is providing clarity inside an otherwise complicated environment. PSD3, the PSR, FIDS, and the digital euro were all pointed to as pieces of a puzzle that, together, are meant to reduce ambiguity for institutions navigating overlapping rulebooks.
Why this matters: for banks and payment providers operating across multiple EU jurisdictions, having a consistent set of reference points under PSD3 interoperability standards and digital euro regulation reduces the guesswork that has historically slowed down cross-border projects. Clarity at the regulatory level tends to translate into faster technical decision-making further down the chain.
The Need for a Common Legal Framework
A shared legal foundation is described as a precondition for financial infrastructure modernization to keep pace with innovation. Without it, interoperable processes risk staying fragmented across markets, even as individual regulations improve.
Supporting Innovation and Fraud Mitigation
Fratini Passi tied this common framework directly to two outcomes: enabling innovation and strengthening fraud mitigation. The logic is straightforward. When institutions operate under a single, coherent legal structure, it becomes easier to build new services on top of shared infrastructure while also closing the gaps that fraudsters typically exploit between disconnected systems.
This is where the analysis becomes relevant beyond the immediate policy discussion. A fragmented legal landscape doesn’t just slow innovation, it also creates blind spots that bad actors can exploit across borders. Aligning legal frameworks alongside technical interoperability effectively closes two vulnerabilities at once, on the innovation side and on the security side.
Expert Insights from CBI Leadership
The perspective driving this discussion comes directly from inside the payments infrastructure sector, lending it practical weight rather than abstract policy commentary.
Interview with Liliana Fratini Passi
Joining FinextraTV, Fratini Passi walked through the shift in market maturity, the accelerating role of smarter regulation, the clarifying function of PSD3, PSR, FIDS, and the digital euro, and the case for a common legal framework to support interoperable, innovation-friendly, fraud-resistant processes. Her remarks were framed within the broader context of ongoing fintech and banking modernisation across the region.
FAQ
How has market perception toward financial regulation changed recently?
Market maturity has evolved from scepticism to greater acceptance regarding regulation, according to insights shared by Liliana Fratini Passi of CBI.
What role does regulation play in financial infrastructure modernization?
Smarter regulation is accelerating infrastructure modernisation and interoperability, making it a driving force behind how quickly financial systems evolve.
Which regulatory frameworks provide clarity in the EU financial environment?
PSD3, PSR, FIDS, and the digital euro offer clarity in a complex financial landscape, helping institutions navigate overlapping rules with more confidence.
Why is a common legal framework important in financial services?
It is necessary to support an interoperable evolution of processes, foster innovation, and enable stronger fraud mitigation across the financial sector.
Article produced with the assistance of artificial intelligence and reviewed by the editorial team.
