“Many of us have launched successful regulatory and digital sandboxes and have set up mechanisms to learn from each other as innovation develops.
“But we must also be alert to new risks where the development of common international approaches to protect financial stability and competition is essential.”
Alder said the failure of SVB and other problems with banks last year was a prime illustration of how technology has massively accelerated the speed at which bank runs can develop.
Important questions are also being asked about the evolving role of big tech and social media across financial services.
This comes as last year, the FCA issued a call for input about the way in which big tech firms could gain advantages from their digital activities.
The regulator said it recognises there could be benefits arising from a concentration of customer data in big tech firms but a handful of them have already achieved global reach.
“Here I’ll just point to the UK’s recent proposals enabling financial regulators to directly regulate how big tech firms provide critical services to financial firms, such as cloud storage,” he added.
“This is a good indication of how our remit is likely to expand into sectors which have not traditionally been classed as financial services. And I know that our European partners are looking at similar issues.”
sonia.rach@ft.com
What's your view?
Have your say in the comments section below or email us: ftadviser.newsdesk@ft.com
