Growth
How can regulation keep up as technological innovation races ahead?As regulators and industry players respond to new technologies, they’ll need to balance regulation and innovation.
The technology revolution has changed every aspect of financial markets. For consumers, this transformation has made financial services more affordable, accessible and tailored to individual needs. For financial institutions, digital tools – including emerging technologies like artificial intelligence (AI), robotics and analytics – have delivered huge opportunities to improve efficiency and manage risk, while reducing costs and better meeting the needs of customers.
Digital platforms have allowed traditional players to adapt their business models, offering new products and services, while facilitating the entry of new competitors to further disrupt the sector. While these technological changes have brought clear benefits to both the financial services industry and its customers, they’ve also raised fundamental questions around how regulation should adapt. For an industry still finalising post-crisis reforms, the rise of fintech presents further challenges.
It’s inevitable that new technologies introduce new risks and different ways of working. But new technologies also offer significant opportunities to improve risk management and enhance the efficiency, safety, and soundness of markets.
Delivering regulatory answers fit for a digital future will call on all market participants to play their part. Banks and regulators will have to revisit old principles, work together and ask new questions around compliance, accountability, transparency, risk management, and governing the proliferation of data.
Our Global Regulatory Network’s latest perspective, which you can download below, details our latest thinking on building a more agile and digitally enabled regulatory foundation for the future. It looks at:
If you have a question, please do get in touch.
Growth
How can regulation keep up as technological innovation races ahead?As regulators and industry players respond to new technologies, they’ll need to balance regulation and innovation.