Technology can be an enabler for conducting business in a faster, smarter, or cheaper way, for better managing costs, or for gaining better analytical insights. Technological innovation is changing the way financial services products are designed, distributed and sold. As the financial services become more digitalised this will bring significant benefits and risks for financial stability, the regulation of firms and consumer protection models.
All this brings more complexity into the system, and complexity brings risk. Financial services firms and whole sectors face the challenges of: needing a clear vision for the future in a radically changing world; having a sufficiently flexible strategy and building the necessary capabilities for thriving in it; and be able to manage the significant transition risks along the way.