Rise Of Technology Threatens Financial System
The fast-rise of technology in the financial services sector poses potential systemic risks to the global financial system, says the World Economic Forum (WEF). The risks include social media and how it can be used to manipulate capital markets and the rise in ‘buy now, pay later’ debt. Many of the risks identified in ‘Pushing Through Undercurrents’ have been driven by the adoption of technology in the financial services sector and include geopolitically-motivated cyberattacks. With talent shortages, especially in some regions, also leaving capabilities weakened, the report warns that some financial institutions may not have the ability to resume critical operations following a cyberattack. It suggests that building cybersecurity centres that can be utilized by private entities collectively could help solve this issue.