Financial Services regulation and trust | KPMG | IM
close
Share with your friends

Financial Services regulation and trust

Financial Services regulation and trust

Digitally-enabled consumers will be better informed and engaged

1000

Key Contacts

Also on KPMG.com

FS regulation and trust

Five opinion-formers from the 30 Voices on 2030 research contemplate the five points below:

  1. Financial Services (FS) firms unable to establish trust will disappear 
  2. The leading firms will look like their customers, inclusive and diverse
  3. Regulators will focus on outcomes, not products
  4. Regtech will transform supervision
  5. Digital identities will be in widespread use

Digitally-enabled consumers will be better informed and engaged – and will judge Financial Services (FS) providers by the outcomes they deliver. Those outcomes will be broad, spanning the personal results secured for individual customers and the wider impacts on society; for example, customers will expect FS providers to be more inclusive and diverse. Those businesses that fall short will rapidly lose trust and, ultimately, the mandate to serve.

In this context, the regulatory agenda will shift away from product supervision, particularly as the traditional verticals of the sector break down. Instead, financial regulators will build new structures to monitor the activities of the firms they police.

As they do so, regulators will have access to new tools, with “regtech” solutions powered by AI and analytics, enabling more efficient and effective supervision. Regulators will also use these technologies to share information with one another, across both national and international boundaries, supporting efforts to combat financial crime.

At the same time, an international consensus on data management and processing will protect the privacy and security of individuals – and provide standards and protocols for consent. Customers will therefore be more comfortable giving permissions. Digital identities, backed by governments, will be widespread, reducing the burden of anti-money-laundering and Know-Your-Customer regulation on customers while making life more difficult for fraudsters.

© 2018 KPMG LLC, an Isle of Man Limited Liability Company and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.

Connect with us

 

Request for proposal

 

Submit