Second, the growing global emphasis on fair treatment to customers, financial inclusion and improved Know Your Customer (KYC) practices will require banks to reorient their business models, their data and information systems, and, in fact, the very mindset of banking, if banks have to remain relevant, going forward. 9.
The effectiveness of prudential regulation has long been questioned on the basis of incentive problems: public bank supervisors may not have the same “skin in the game” as do investors of uninsured financial intermediaries (Calomiris and Jaremski, 2016).