Collaboration between a bank and its core system provider is critical to ensure that technology solutions can be integrated quickly and cost effectively within the core system. Creating the Right Regulatory Environment Responsible innovation, especially for smaller institutions, requires two key aspects: a clear idea of how the technology serves a bank’s strategic objectives and a regulatory environment that supports innovation.
I will touch today on the important interplay between these factors, and in particular, the role that regulators can play in creating a regulatory environment that is conducive to innovation, preserves the safety and soundness of the financial system, and protects consumers. As regulators, we need to ensure that banks uphold sound risk-management practices.