“New Ways – the Banking Magazine”: Regulation, AI, cyber risks – what’s becoming important now

Key conditions in the banking sector are currently shifting: the EU is promising regulatory simplification, whilst artificial intelligence is accelerating cyberattacks to unprecedented levels and, at the same time, transforming the way risk management is carried out. The latest issue of “New Ways – The Banking Magazine” explores what these developments mean for banks and where action is now required.

The EU aims to simplify the banking supervisory framework and ease the regulatory burden on institutions. In terms of reporting, the number of data points could fall by up to around 50 per cent. However, fewer reporting requirements do not automatically mean less work: banks must adapt their data management, processes and controls to the new requirements. We outline the changes on the horizon, where opportunities for flexibility may actually arise, and how banks can make strategic use of them.

AI is drastically accelerating the development of cyberattacks: there may now be only a few hours between a vulnerability being disclosed and an attack being deployed. This makes speed a crucial factor in cyber defence. We explain why traditional patching and change management processes are reaching their limits, how banks can reduce their response times, and why rapid defence requires not fewer, but smarter controls.

AI and automation are also transforming the risk function. Monitoring, reporting and data preparation can increasingly be automated, whilst in-depth analysis, human strategic judgement and advising business units are becoming more important. This is changing not only processes, but also roles and skill sets. Our experts highlight which skills will be in demand in the future and how banks can prepare their teams specifically for these changes.