The project has a few goals. By developing climate scenarios that are relevant to Canada, we hope to encourage financial institutions to use scenario analysis. We also hope a common set of scenarios will make the results more comparable.
Financial services are moving from an institution-based approach to an ecosystem approach with incumbent regulated institutions at the centre. Agile fintechs are key partners in the ecosystems to provide cutting-edge innovations such as credit scoring and customer relationship management solutions based on artificial intelligence. Regulators must seek innovative approaches to understand these fintechs, mentor them and grow their risk management capabilities.