Template-Type: ReDIF-Article 1.0

Author-Name: Gábor József Harkácsi
Author-Workplace-Name: Magyar Nemzeti Bank
Author-Email: harkacsig@mnb.hu

Author-Name: László Péter Szegfű
Author-Workplace-Name: Magyar Nemzeti Bank
Author-Email: szegful@mnb.hu


Title: The Role of the Compliance Function in the Financial Sector in the Age of Digitalisation, Artificial Intelligence and Robotisation

Abstract: Our analysis is intended to fill a gap in the sense that the focus of our study is on
the challenges of the compliance function and their responses, putting into complex
perspective the lack of and the need for striking a delicate balance between the
quality of the international and national legislative environments and the role
of ethical and due diligence frameworks. As a result of digitalisation, FinTech
enterprises have become unavoidable in the world of financial services, which has
had the effect that the business and risk models of incumbent players have changed,
exerting a strong influence on the regulatory environment and in parallel on the
development and change of trust and reliability as well as ethical and prudent
conduct. Inevitably, regulation will always fall behind new needs and new emerging
technologies, since authorities need to develop a thorough understanding of the
functioning and risks of these technologies in order to establish adequate regulation
of them. The compliance function must find its place and role in this changing
environment in order to be able to efficiently support financial sector participants
in their duty to comply with rules and ensure fair and ethical conduct.

Classification-JEL: D18, D53, E58, G01, G21, O33, O52
Keywords: digitalisation, artificial intelligence, ethics, compliance, trust, banks, FinTech, PSD2
Pages: 152-170
Volume: 20
Issue: 1
Year: 2021
File-URL: https://en-hitelintezetiszemle.mnb.hu/letoltes/fer-20-1-e2-harkacsi-szegfu.pdf
File-Format: Application/pdf
Handle: RePEc:mnb:finrev:v:20:y:2021:i:1:p:152-170