FinTech Magazine January 2020 | Page 33

TECHNOLOGY : OPPORTUNITY AND RISK
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TECHNOLOGY : OPPORTUNITY AND RISK
According to Josh Bottomley , Global Head of Digital , Data & Development at HSBC : “ the impact of technology and data is going to be different in financial services because of the distinct aspects of this industry .” Bottomley acknowledges that the financial sector is one “ inherently based on managing risk ” – regulation is fundamental , for example , in maintaining the integrity of the industry , but new innovations can bring greater complexity to a risk management landscape that is already one of the most complex . “ On the one
hand ,” he notes , “ technology can help both banks and regulators manage risk in the sector more effectively , while on the other hand new challenges are introduced to the system .”
Therein , according to HSBC , lies the ‘ critical balance ’ in the future of banking for incumbents , in which three key development areas must be aligned : technology and data enablement , the risk management advantage , and the consumer behaviour revolution . The successful bank of the future , Bottomley affirms , must “ carefully balance a series of trade-offs between what technology
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