FCA outlines new data science focus
PEER-TO-PEER lenders could soon see their data used as part of a new Financial Conduct Authority (FCA) focus on automation and machine learning, to help the regulator identify and respond to market trends faster.
The FCA has set out plans to grow its data science resource so it can make better use of tools such as web scraping, network analytics and simulations to improve how it receives and uses information from all regulated firms.
The City watchdog and the Bank of England have both unveiled plans to develop their data and analytics capabilities, which the FCA said could help detect financial crime, monitor patterns and spot consumer harm more quickly.
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The FCA is already piloting new ways for firms to report their regulatory data and said it will provide updates on other changes to how its data strategy is progressing.
“Advances in technology are changing the nature of the firms and markets we regulate,” Christopher Woolard (pictured), executive director of strategy and competition at the FCA, said.
“Our data strategy provides a clear path for us to ensure we have the necessary skills and processes in place to remain at the forefront of this change.
“In keeping with our mission, a data-driven approach to regulation allows us to anticipate harms before they crystallise, better understand the effect on consumers of changing business models and to regulate an increasing number of firms efficiently and effectively.”
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