Learning Objectives:

  • Analyse the regulatory challenges posed by FinTech and digital innovation.

  • Understand cybersecurity and operational resilience requirements.

  • Assess the impact of regulatory evolution on banking.

8.1 FinTech and Digital Innovation

The University of Edinburgh module covers “FinTech and digital finance” as a core topic . The EM Normandie module covers “the role of technology in compliance” and “RegTech and the digital transformation of compliance” .

Key regulatory challenges:

  • Crypto-Assets: Classification and regulation of digital assets.

  • Open Banking: Data sharing and API regulation.

  • AI and Machine Learning: Ensuring fairness, explainability, and data protection.

  • RegTech: Technology used for regulatory compliance.

8.2 Cybersecurity and Operational Resilience

The EM Normandie module covers “cybersecurity regulations and operational resilience” . The University of Edinburgh module covers “FinTech and digital finance” as a core topic .

Key requirements:

  • Cyber Risk Management: Frameworks for identifying, managing, and reporting cyber risks.

  • Incident Reporting: Reporting significant cyber incidents to regulators.

  • Third-Party Risk Management: Managing risks from cloud providers and other technology vendors.

  • Operational Resilience: Ensuring banks can withstand and recover from disruptions.

8.3 Regulatory Evolution

The University of Edinburgh module examines “regulatory and policy developments over the last decade” . The EM Normandie module covers “the evolving role of technology in compliance” .

Key trends:

  • Basel IV: Implementation of the finalised Basel III standards.

  • ESG and Sustainability: Integration of ESG factors into prudential regulation.

  • Digital Operational Resilience: Requirements such as the EU Digital Operational Resilience Act (DORA).

  • Global Harmonisation: Efforts to align regulatory approaches across jurisdictions.

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