New technology keeping Central Bank on toes to protect consumers - Central Bank's Lane
A wave of technological innovation means the Central Bank must focus on maintaining financial stability and protecting consumers, according to its governor, Philip Lane.
In a speech at the Financial Services Ireland-Ibec annual lunch today, Mr Lane said that there are conflicting forces at work in reshaping the structure of the financial sector.
“In one direction, economies of scale and scope may result in a higher degree of consolidation across financial services providers,” he said.
“In the other direction, there are other forces that may lead to increasing fragmentation of in the provision of financial services, with specialist providers increasing the level of competition in individual market segments and threatening the integrated model of universal banking.”
Mr Lane said that the Central Bank has to ensure that it keeps up to speed with the changing technological environment “and is able to assess the level of preparedness of regulated firms”.
He added: “The challenge for policy makers is to understand and attempt to appropriately regulate the evolving financial services landscape, while at the same time balancing often-competing objectives of competition and choice, financial stability, and the effectiveness of macroeconomic policies.”
Mr Lane also said that the Central Bank is embracing technological innovation, such as undertaking better analysis of “big data” in the identification of financial risks.