The financial services industry is experiencing dramatic transformation, challenging both regulators and financial services firms to keep pace.
Regulation continues to drive the strategic agenda. Organisations are required to manage the raft of new rules put forward by global, regional and national policy setting bodies that are changing the structure, supervision and governance of how they operate. Implementation of complex regulatory changes is forcing businesses to change the way they operate while pressure from stakeholders, the market and the competition is already driving change.
Shareholders are demanding that management evidence their ability to meet regulatory demands with limited resources, margins are tight and the pressure to differentiate in a competitive market is intense. In 2020 and beyond, increased regulator scrutiny is expected to continue, particularly in the financial services sector.
As firms pursue greater agility and resiliency, they are expanding their use of advanced data analytics, artificial intelligence, and innovative technologies, triggering further risk governance adjustments and regulatory attention in areas including safety and soundness and consumer protection. Regulators will increasingly assess how firms are adapting to market pressures and managing the associated risks, focusing on firms’ resilience, governance and controls, data security, and consumer protection—and expecting all to align with ethical and sound conduct practices.
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