Several evolving events appear to have contributed to a fast-changing environment in recent years. In fact, data-driven and digitally enabled innovation in the financial sector only grew with the COVID-19 pandemic, which forced many to work remotely and digitally, and accelerated a cultural shift and openness toward digital products and services.

This evolution is particularly pertinent to the financial sector in terms of payments and digital currencies, mostly driven by non-banks, especially stand-alone entities or those in partnership with traditional players.

Accelerating the environmental, social and governance (ESG) agenda also gained traction amid a significant focus on health and safety. But hyperactivity of digitally enabled services can pose risks within and outside the financial sector. Fraud, money laundering and cyberattacks are worrisome as countries deploy significant public funds to support the economy, while operational resilience and third-party management are a systemic concern as businesses migrate online.

There are still mixed views on how to manage risks in the financial sector with the increased participation of non-banks. Privacy issues are becoming more relevant: financial institutions face growing concerns over data rights and privacy. Major policy issues are also emerging as society and the financial sector accelerate toward data-driven business models. The coming years will see the policy-making debate heat up over tech and data regulation, regulatory and supervisory architectures, and cross-border arrangements.