The Basel Committee on Banking Supervision has released a comprehensive report analysing the impact of ongoing digitalisation on the finance sector.

The Committee notes that while digitalisation offers significant benefits to both banks and their customers, it also introduces new vulnerabilities and amplifies existing risks. These include increased strategic and reputational risks, expanded factors that could challenge banks’ operational risk and resilience, and potential system-wide risks due to greater interconnections.

Although banks are adopting various strategies and practices to mitigate these risks, effective governance and risk management processes remain critical.

The Committee emphasises the importance of continuously monitoring developments related to finance digitalisation and indicates that it may issue additional standards or guidance if necessary to address emerging risks and vulnerabilities.

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