The Monetary Conduct Authority’s chief information, info and intelligence officer Jessica Rusu has stated expertise may be “a power for good” however comes with many dangers.
Talking on the Cash 2020 Amsterdam occasion final week (June 8), Rusu defined that the rise in companies affected by cyber-attacks demonstrates the dangers that come up by means of innovation.
“Trying by means of the lens of a regulator, having spent a few years in large tech, fintech and conventional banking roles – I see that innovation and the position of expertise in remodeling markets is each a danger to finance, in addition to a chance,” she stated.
“The forces of digital revolution proceed to see development in fintech, in addition to new enterprise fashions powered by synthetic intelligence. And whereas this expertise could be a power for good, we additionally see a rise in companies affected by cyber-attacks.”
Rusu defined that many customers are contemplating various types of finance comparable to crypto.
She stated a current research discovered that 55 per cent of Bitcoin holders purchased it for the primary time final 12 months and now, one in 5 UK residents personal some type of crypto.
“Regulators are proper to be involved, notably in gentle of the $60bn (£49bn) collapse of the so-called stablecoins Luna and TerraUSD in Could, with consequently distressing impacts on retail customers,” she stated.
“There proceed to be vital dangers, particularly for retail customers, lots of whom are enticed to buy unsuitable or inappropriate merchandise by way of social media.”
Globalisation and expertise mixed
Rusu argued that globalisation and expertise have led to a dramatic transformation in finance, and because the worlds of legacy finance and new finance proceed to collide, there’s “exponential development in progressive enterprise fashions”.
“Macro occasions together with local weather change, post-Brexit transition, struggle in Ukraine, and the quickly escalating value of residing disaster proceed to carry new challenges,” she stated.
“For instance, because the struggle in Ukraine drives up vitality costs, inflation is at a 30-year excessive, and the Financial institution of England has warned that inflation would possibly attain 10 per cent inside months, and this can have a profound influence on shopper credit score.”
She defined that the FCA’s information technique outlines the investments it’s making in expertise and information to develop into extra progressive, assertive, and adaptive in finishing up its position as a regulator.
“We’re remodeling our platform, constructing new instruments, and rising our capabilities to ship modifications throughout your complete information and expertise pyramid,” she added.
“We’re modernising our enterprise structure to a cloud-based infrastructure, with strengthened safety and operational resiliency.”
The FCA can be increasing its information with new sources of intelligence comparable to scraping over 100,000 web sites each day to establish scams and fraud.
Rusu stated: “I consider the following few years will result in vital innovation and alter in monetary companies. And while, as technophiles, we discover many of those modifications thrilling, we additionally see earlier than us a collective name to motion to embrace the advantages of innovation whereas addressing the dangers to customers.