How is Wall Street managing the wave of new financial technology?
Technology often is filled with the promise that it will make life better and viewed as an enabler of creating a more efficient, profitable and competitive organization. But for all the hype and expectations of the current fintech revolution, is Wall Street doing enough to identify and manage the associated risks?
The Depository Trust & Clearing Corporation (DTCC) is asking this question – and attempting to help trading firms, technology vendors, regulators and others become more aware of how these new technologies may impact the safety and stability of the financial system. In a recently released white paper Fintech and Financial Stability – Exploring How Technological Innovations Could Impact the Safety & Security of Global Markets, DTCC cautions that while fintech adoption benefits the financial services industry in areas such as improving client experience, strengthening critical infrastructure components, creating efficiencies and reducing costs, it could also pose or exacerbate certain risks, including cyber security concerns and other third-party risks.
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