Julia Black, external member, Prudential Regulatory Authority looks at the trends for RegTech for 2020, the role artificial intelligence and machine learning will play in shaping innovation and how culture can impact how financial institutions and regulatory bodies find compliance solutions together.
AI and machine learning will feature heavily in 2020, according to Black. “Obviously, you don’t get any brownie points for saying that.” But she reminds the industry not to ignore regulatory reporting, “One of the most Cinderella areas of the whole of regulation.”
How the long running discussion on how regulations can serve as a barrier or a control on regulation is one that is constantly changing, says Black. “The question we always have to ask is well how safe is safe enough, right? How much risk do you want to allow people to take? Yes [regulation] can stifle innovation, but sometimes you might not want that innovation because it might pose too many risks. Yes, it can, but the challenge is always to get that balance right and it’s never going to be right for all time, because society is actually is going to keep changing and keep evolving.”
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