ROMANIA Law and Practice Contributed by: Sergiu-Traian Vasilescu, Luca Dejan, Bogdan Rotaru and Ana-Maria Bută, VD Law Group
1. Fintech Market 1.1 Evolution of the Fintech Market The Romanian fintech sector has recently emerged as a key player in Eastern Europe, driv - en by digital transformation, the rise of mobile and internet banking, and growing demand for alternative financial services. Over the past year, the industry has seen significant advancements, including the adoption of blockchain technology, the growth of digital lending platforms, and the integration of AI-driven tools for risk assess - ment and fraud detection. However, challenges remain, particularly in bridging the gap between urban and rural areas where traditional banking still dominates. Looking ahead, the sector faces both opportuni - ties and regulatory hurdles, especially with the enforcement of the EU AI Act and MiCA. These regulations will require fintechs to adapt their AI-powered solutions and crypto-related ser - vices to meet new transparency, security and risk management standards. As AI continues to shape the industry – through personalised finan - cial advice, automated lending, and fraud pre - vention – companies must balance innovation with compliance, ensuring their models are ethi - cal, explainable and aligned with evolving legal frameworks. The ability of Romanian fintechs to navigate these changes while maintaining growth and efficiency will determine their future success. 2. Fintech Business Models and Regulation in General 2.1 Predominant Business Models The fintech ecosystem in Romania is rapidly evolving, with a diverse range of business mod - els and verticals that reflect both global trends
and local innovation. The following are the pre - dominant fintech verticals currently shaping the Romanian market. Artificial Intelligence (AI) AI is driving transformative change across the fintech landscape in Romania, particularly in areas such as underwriting, credit scoring, fraud detection and customer service automa - tion. Romanian fintechs are leveraging AI to enhance decision-making processes, improve operational efficiency and deliver personalised financial services. Payment Service Providers (PSPs) Payment service providers are a cornerstone of Romania’s fintech sector, offering innovative solutions for both consumers and businesses. These include mobile payment systems, digital wallets and peer-to-peer (P2P) payment plat - forms. Technologies such as QR codes, biom - etric authentication and tap-and-pay solutions are increasingly prevalent, enabling seamless Modern core banking systems are being adopt - ed by both new entrants and legacy players in Romania. These systems facilitate the digital transformation of traditional banking services, enabling faster processing, improved scalability and enhanced customer experiences. Blockchain and Decentralised Finance (DeFi) Romania is witnessing growing interest in block - chain technology and its applications, including Layer 1, 2 and 3 solutions, as well as block - chain infrastructure development. Decentral - ised finance (DeFi) is gaining traction, with plat - forms offering services such as decentralised exchanges (DEXs), lending protocols, staking and stablecoins. These innovations are reshap - and secure transactions. Core Banking Systems
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