This paper explores the rapidly changing landscape brought about by technology and how it undermines many of the barriers that protect public authority. We examine the readiness of regulators in 2030 and beyond.
Megatrends are transforming the way we do business at an extraordinary speed. To be able to effectively regulate society and the economy, it is essential that regulators have a firm grasp on both the new and emerging business models they are tasked with regulating, and the technologies which underlie them. While they strive to strike the right balance between the consumer protection, the promotion of fair and efficient markets, and fostering innovation, regulators must be at least as innovative as those they monitor.
The surge of fintech start-ups continue to disrupt the financial sector with their innovative use of new and existing technologies. From marketplace lenders, robo advisers and the use of drones for property assessment in the insurance industry are all disruptors that requires regulators to keep pace with.
The need to change comes at a cost
While many regulators have recognised the need to change, this comes at a price. Competing demands on stretched public dollar, government funding of regulatory agencies often falls short. In light of this, regulators have been forced to reconsider their funding models, their management styles and the possibility of achieving efficiencies through technology.
Funding is crucial given that regulators can only respond within the limits of the resources available to them. Successful regulators will implement these changes in collaboration with stakeholders, including governments, policy makers, businesses and consumers.
By 2030 regulators response to evolving digital world must be won by embracing innovation, collaborate at all levels, be more agile, transform digitally, connect and be more proactive.
We see the regulator of 2030 moving as fast as – or faster than – those they regulate.
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This article was originally published by Chartered Accountants Australia and New Zealand in June 2017. You can read the article and see the full edition here.