The FCA’s regulatory considerations for a data-driven future
The Financial Conduct Authority (“FCA”) has raised a number of considerations about data in financial services and its future regulation.
These considerations are raised regarding the regulation of such data including striking the right balance between the value and privacy of consumer data versus expediency.
- Data is the lifeblood of a modern regulator and in the next five years, we expect to become as much a regulator of data as a financial one.
- While data can help institutions identify risk, it can also entrench bias and make it more difficult for consumers to access loans or products such as insurance.
- International coordination will be increasingly vital with the rise in risk associated with digitalisation and gamification.
- Investment in tech and skills is the key to staying ahead.