This holds substantial promise as the delivery vehicle of the future: there is huge potential and an exciting opportunity. However, the expansion of such capabilities must be accompanied by a minimum level of essential security features and continued compliance with established covenants relating to privacy of customer transactions.
We are facing a period of rapid innovation in financial markets, growing competition, and fading history that is relevant to how stress could play out in the future. In my remarks today, I would like to present a framework to think about the changing risk landscape for banks, as well as some practical steps for risk managers and supervisors that flow from this analysis.