Scott Underwood, Head of Solutions Consulting at Niu Solutions, comments on the FCA’s announcement that it will re-evaluate regulatory definitions on the use of digital and mobile solutions:
“The FCA’s decision to re-evaluate its ‘technology neutral’ position is a step in the right direction for financial services companies as more and more firms adopt digital and mobile platforms to gain a competitive edge.
“Many firms find the current regulations unclear, and are often unsure of how to interpret them when it comes to innovation. As a result, the rules as they stand can inhibit firms from moving towards digital transformation and adopting mobile solutions, which represents a major challenge for the industry.
“The changes to the FCA’s technology guidelines are likely to be looked on favorably by businesses operating within the financial sector, as these new rules will enable firms to consider a much wider range of options. At the moment, it is very difficult for off-the-shelf IT solutions to meet the FCA’s full requirements, as one size simply does not fit all. Instead, firms should consider adopting bespoke, hybrid solutions that have been created specifically with their business goals and FCA guidelines in mind.
“Once the current regulations are reviewed, and new rules are potentially enforced, businesses will still face the challenge of managing additional compliance measures, however. As such, firms should seek advice from experts who can provide risk assessments that support the safe, strategic adoption of a more digital approach.”