Banks Assert FCA Holding Back Innovation
(31 January 2022 – United Kingdom) British Banks believe the Financial Conduct Authority (FCA) is not responding swiftly enough to new technology trends, leading to costly stalled innovation in the financial sector.
Financial institutions assert that they have been restricted from trialling new technologies due to a lack of formal guidance from regulators. United Kingdom (UK) Banks report that more sophisticated use of technology is a critical part of their business’ plan for improving products and services in 2022 yet admitted that the implementation of new technology has been severely impeded due to their reliance on legacy systems.
“The pandemic has catalysed changes across the banking sector. Technology is now playing a far greater role in allowing finance companies to deliver products, services and experiences to customers” commented Yobota Head of Commercial, Ion Fratiloiu.
The FCA contends Banks concerns, declaring that the regulator is on top of innovation and developments in technology.
“The FCA is recognised as a leader in our support for innovation. We have helped nearly 600 innovative firms progress to market and over 150 have been accepted to test products or services safely in our regulatory sandbox, which was a world first” a spokesperson said.
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