The technology revolution has changed every aspect of financial markets. For consumers, this transformation has made financial services more affordable, accessible and tailored to our individual needs. For financial institutions, digital tools, including emerging technologies such as artificial intelligence (AI), robotics, analytics, and distributed ledger technology, have delivered huge opportunities to radically improve the efficiency and effectiveness of risk management, while reducing costs and better meeting the needs of customers. Digital platforms have also allowed traditional players to adapt old business models, offering new products and services, while also allowing an entirely new tranche of nontraditional competitors to accelerate the disruption of the sector.
But while the technological changes sweeping the financial markets have brought clear benefits to both industry players and consumers, they’ve also raised fundamental questions around how regulation should adapt. For an industry still finalizing reforms introduced after the global financial crisis, the rise of FinTech presents another a new round of challenges. It’s time for financial institutions and regulators alike to ask: How can we build a regulatory environment fit for a digital future?