Digitally-enabled consumers will be better informed and engaged
Digitally-enabled consumers will be better informed and engaged – and will judge Financial Services (FS) providers by the outcomes they deliver. Those outcomes will be broad, spanning the personal results secured for individual customers and the wider impacts on society; for example, customers will expect FS providers to be more inclusive and diverse. Those businesses that fall short will rapidly lose trust and, ultimately, the mandate to serve.
In this context, the regulatory agenda will shift away from product supervision, particularly as the traditional verticals of the sector break down. Instead, financial regulators will build new structures to monitor the activities of the firms they police.
As they do so, regulators will have access to new tools, with “regtech” solutions powered by AI and analytics, enabling more efficient and effective supervision. Regulators will also use these technologies to share information with one another, across both national and international boundaries, supporting efforts to combat financial crime.
At the same time, an international consensus on data management and processing will protect the privacy and security of individuals – and provide standards and protocols for consent. Customers will therefore be more comfortable giving permissions. Digital identities, backed by governments, will be widespread, reducing the burden of anti-money-laundering and Know-Your-Customer regulation on customers while making life more difficult for fraudsters.
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