Mahi Sall, Advisor, Fintech-Bank Partnerships, Payments and Financial Inclusivity
January 25th, 2023
Mahi Sall is the CEO & Founder of FinXpair, a Berlin-based strategic advisory boutique firm focu[...]
FCA’s Emerging Regulatory Strategy for Big Tech and Artificial Intelligence
FCA | Jul 12, 2023
Insights from FCA Chief Executive, Nikhil Rathi, speech delivered at the Economist Impact, Finance transformed: exploring the intersection of finance 2.0 and web3, London
FCA's Regulatory Approach to AI
- The FCA plans to open an AI sandbox for firms wanting to test the latest innovations.
- Big Tech's role as gatekeepers of data in financial services will be under increased scrutiny.
- Will regulate firms designated as Critical Third Parties, which underpin financial services and can impact stability and confidence in markets.
See: The Use and Regulation of Artificial Intelligence: When AI Meets Consumer Duty
- Considering the risks that Big Tech may pose to operational resilience in payments, retail services, and financial infrastructure. It is also concerned about the potential for Big Tech to manipulate consumer behavioral biases.
- The FCA is questioning where accountability should sit – with users, with the firms, or with the AI developers. It is also considering what should be offered in terms of compensation or redress if customers lose out due to AI going wrong.
AI Innovation and Collaboration
- They are examining the explainability of AI models and the potential problems around data bias.
- Sees many opportunities for AI, including boosting productivity, improving financial models, tackling the advice gap, hyper-personalizing products and services, and tackling fraud and money laundering more quickly and accurately.
- The FCA is investing in its regtech horizon scanning and synthetic data capabilities, and has established a Digital Sandbox to support Fintech and other innovations.
See: How AI is Shaping the Future of Financial Services in Canada
- Existing frameworks in place to address many of the issues that come with AI, such as the Consumer Duty and the Senior Managers & Certification Regime.
- The FCA is open to innovation and testing the boundaries before deciding whether and what new regulations are needed. It aims to support economic growth and international competitiveness, and is ready to lead and help make the UK the global home of AI regulation and safety.
Read the full speech --> here
The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org
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