How Will Big Tech Impact Regulation?
A speech given last week by Denis Beau, First Deputy Governor of the Bank of France, examines the risks and challenges to regulation posed by the explosion of Big Tech and Fintech firms.
In the past decade there has been a structural shift stemming from the digitisation of finance, utilising cutting-edge technologies like big data, AI, blockchain and cloud computing. While for some, this promises better experiences for consumers, a more diversified financing of the economy and a more efficient financial system, there are also big risks ahead that regulators will need to adapt to. Beau’s speech highlights some of the regulatory issues these changes raise, while explaining how the Banque de France are addressing the balance between fostering innovation and ensuring a secure and level playing field.
However the future plays out, Beau ends with a call to action for all those in the industry to ensure that ‘irrespective of the big changes to come in tomorrow’s financial intermediation, our compass continues to point toward the common good of financial stability.’ A sentiment we can all agree with.
Read the speech in full here.