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Incumbent banks’ legacy systems and infrastructure are often incompatible with the rapidly evolving digital landscape.
Banks’ supply chains have become more complex through a process of digitalisation, which challenges the capability and integrity of banks’ controls and oversight.
The rise of non-bank market participants broadens the provision of banking services beyond the reach of industry regulators.
These market dynamics contribute to a changing mechanism through which risks emerge, intensify and spread.
The net outcome is heightened vulnerability to conduct risks and financial crime, greater inter-dependency between financial and non-financial risks and a potential threat to financial stability at an organisational and systemic level.