The Role of the Compliance Function in the Financial Sector in the Age of Digitalisation, Artificial Intelligence and Robotisation
Gábor József Harkácsi () and
László Péter Szegfû ()
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Gábor József Harkácsi: Magyar Nemzeti Bank
László Péter Szegfû: Magyar Nemzeti Bank
Financial and Economic Review, 2021, vol. 20, issue 1, 152-170
Abstract:
Our analysis is intended to fill a gap in the sense that the focus of our study is on the challenges of the compliance function and their responses, putting into complex perspective the lack of and the need for striking a delicate balance between the quality of the international and national legislative environments and the role of ethical and due diligence frameworks. As a result of digitalisation, FinTech enterprises have become unavoidable in the world of financial services, which has had the effect that the business and risk models of incumbent players have changed, exerting a strong influence on the regulatory environment and in parallel on the development and change of trust and reliability as well as ethical and prudent conduct. Inevitably, regulation will always fall behind new needs and new emerging technologies, since authorities need to develop a thorough understanding of the functioning and risks of these technologies in order to establish adequate regulation of them. The compliance function must find its place and role in this changing environment in order to be able to efficiently support financial sector participants in their duty to comply with rules and ensure fair and ethical conduct.
Keywords: digitalisation; artificial intelligence; ethics; compliance; trust; banks; FinTech; PSD2 (search for similar items in EconPapers)
JEL-codes: D18 D53 E58 G01 G21 O33 O52 (search for similar items in EconPapers)
Date: 2021
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Persistent link: https://EconPapers.repec.org/RePEc:mnb:finrev:v:20:y:2021:i:1:p:152-170
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