Deutsche Bank White Paper: “Regulation driving banking transformation: 2nd Edition”
Deutsche Bank has just launched the second edition of its white paper, “Regulation driving banking transformation” – the product of months of research by the bank and including contributions from SWIFT, AFME, Linklaters and Latham & Watkins.
The paper assesses the impact of three key trends in the financial industry, calling for a regulatory environment that supports the safe and robust development of each. These trends are:
The rise of FinTechs: these players, producing new products and upscaling customer service, have the potential to alter incumbent players’ business models and even financial market structure. This is not a fleeting trend, and one that financial institutions and regulators will have to navigate carefully.
BigTechs offering financial services: advanced in consolidating, analysing and using clients’ data, BigTechs are now turning their attention to financial services. While this drives innovation, the very distinct business models employed by BigTechs also trigger regulators’ vigilance around potential gaps when it comes to competition and data protection rules.
Evolution of the crypto-assets market: although the volumes of initial coin offerings (ICOs) or payments in crypto-assets still pale in comparison to traditional methods of capital-raising or payments facilitation, forward-thinking regulators have already made their moves to provide much-sought-after regulatory clarity to set the path for the market’s development.
The paper concludes that regulation will play a key role in shaping the face of this newly emerging landscape, defining the trajectory of change.