The European Commission could introduce EU-passporting and lower regulatory requirements for financial technology firms, moves that could undercut London's leading position in "fintech" as Britain gets ready to leave the European Union.

The EU executive's vice president Valdis Dombrovskis said on Thursday that the Commission is considering how to regulate the expanding sector to encourage its development in Europe, while protecting consumers from risks that may emerge.

"Fintech" firms use modern technology to compete with traditional financial services providers, offering banking products such as payments, credit, deposits and wealth management more cheaply online.