Jessica Rusu, Chief, Data, Information and Intelligence Officer of the FCA, recently gave a speech in which she laid out what some of the latest drivers of change in the financial services industries are at the moment, and how the FCA intends to respond to them.
Pushing forward with data
In the speech, the FCA highlighted that its use and understanding of data is one of the major driving factors of the financial services industry, and the FCA needs to make sure that it is able to keep up. With an industry that is so date-driven, it is vital that the regulator too is able to lead with the data.
Regulators like the FCA needs to ensure that they use and leverage the same techniques as those they serve. Preventing harm, tackling poor practice and supporting innovation and growth opportunities will help the FCA and wider financial services to be the best they can be, while also ensuring that they maintain and evolve existing standards.
Data and social media
One of the first areas where this will be felt will be in the realm of social media. The FCA has been clamping down on social media platforms to ensure that search engines are complying with laws regarding scam advertising – just as newspapers and media companies already have to do.
The FCA’s digital listening tools and the monitoring of social media are helping to collect data on the latest investment, mortgage, and insurance practices – both those that are legitimate and those that are causing harm. With over 51,000 firms under the FCA’s umbrella, it is vital that it uses tools to investigate where harm can be prevented. The correct data collection and interpretation means that the FCA will be able to prioritise more effectively than ever before. The data pool they have to pull from might provide a huge resource, but they need to be able to utilise it correctly.
Transforming the FCA’s data strategy and capabilities
With this in mind, the FCA has some plans it wishes to put in place to ensure protection and further growth. This includes developing a digital unified intelligence environment that will hopefully allow the Regulator to predict and prioritise, as mentioned above. Ideally, the FCA will be creating a cutting-edge and modular program that can expand as needed.
Part of this will also include looking internally to ensure that the FCA’s own data culture is the strongest it can be. Jessica Rusu highlighted that, in order for the financial services industry to be at its best, the FCA has to be leading by example. The standards that it sets for its companies must be ones that it adheres to itself.
The FCA is set for many changes in the future, and with this could come a lot of regulatory turbulence as firms scramble to ensure that their data meets the new regulations put in place. With the help of Neopay, you will gain expertise and the latest guidance to ensure that your firm will always be compliant with regulations, no matter how much they change. Get in touch with our team for more information today.