Technology and finance: new risks plus new challenges or traditional risks in new suits?

Abstract

Technology could bring important efficiency gains to the financial system and also to financial authorities. But, evidence shows that it could have costs if not properly managed. At the very least we should ensure that the principle of “same business, same risk, same rules” is upheld. But we should also assume that there are still unknowns and that some situations would call for a more cautious approach. Technology is already evolving at a rapid pace, one that, to date, neither regulation nor supervision has managed to hold back. Risk management and industry awareness will continue to be key.