Policymakers and regulators worldwide should help shape an orderly modernisation and digitisation of the financial sector to address the opportunities and risks associated with big techs? increasing role in financial services according to a new report by the International Banking Federation (IBFed) and global management consulting firm Oliver Wyman.

The report makes three distinct sets of recommendations: revising measures within financial regulation, strengthening the policy response on themes that cut across industries, and extending finance-specific regulations to other industries where inconsistencies in regulation and enforcement have emerged. 

Hannah Gurga, Managing Director, Digital Technology & Cyber, UK Finance, said:

Technology is transforming many aspects of our lives, including the way we choose to bank and manage our finances. Across the banking and finance sector, firms are investing in new technologies and partnering with fintech operators to develop products and services that better meet the needs of their customers. The entry of big tech into financial services creates new opportunities, but it also brings new risks. As we embark on this next market evolution, consideration is now needed as to how best to maintain the stability, resilience, and consumer protections that are so integral to the banking system.