Non-Bank Financial Assets are Increasing. What is the Financial Industry Doing to Improve Consumer Safety and Regulation?

 

Non-bank financial assets are growing, and are a popular mortgage and lending option for many individuals, only becoming more popular, with a rise in total global financial assets of 7.7 percent, according to Central Banking Newsdesk. Why is this such a growing concern? Non-banks, or “shadow banks,” as some call them, are unregulated and carry risks to financial stability.

How are non-banks coming to dominate the industry and why do they pose such concerns to financial experts? Currently, 60 percent of consumer and business credit is supplied by non-bank institutions, with many non-mortgage providers providing home loans. Some are concerned by the rise of non-bank lending, because these institutions, such as Lehman Brothers and AIG, crashed and required huge bailouts by the government, which contributed to the 2008 recession.

What has catalyzed the growth in non-bank lending and how do they sometimes seem to hide some of their risks? Richard Harris, EVP Head of Strategy & Advisory, Feedzai, shares about some of the key issues that need to be tackled regarding financial stability in today’s age.

Richard’s Thoughts

“So at Feedzai, we launched our RiskOps platform last year to counter three, clearly emerging industry challenges. Number one, real-time data and payments move between banks around the world in seconds Now, number two, identity in the 21st century, identity is a digital and biometric challenge. And number three, collaboration, fraud, and financial crime teams now need to be able to collaborate across our financial institutions. And the tooling that they had in the past simply didn’t really allow this to take place. So with RiskOps, what we’ve built is a single platform that allows banks to manage all the data all the time in real-time, and allow their teams to collaborate to bring the best outcomes for them and for their consumers.”

Follow us on social media for the latest updates in B2B!

Latest

home intelligence
How Have Home Intelligence and Automated Shading Solutions Improved Home Energy Efficiency and Comfort?
February 6, 2023

On today’s episode of the Draper at Home podcast, host Michelle Dawn Mooney, speaks with Scotty Allen, the Chief Operating Officer of Josh.ai, Maryellen Oswald, Custom Integration & Partnerships Channel Manager, Somfy USA, and Tyson McDonald, Director of Business Development, Motorized Solar Solutions for Draper, Inc., to talk about how the effect of home intelligence […]

Read More
How Royal Caribbean is Elevating Entertainment At-Sea
February 6, 2023

— Live stage productions and musicians play a crucial role in making the experience of a Royal Caribbean cruise truly unforgettable. Behind the scenes, there’s a whole team of professionals dedicated to bringing top-notch entertainment to the passengers. The process starts with a creative team that conceptualizes the shows, selecting songs and choreography to […]

Read More
gas costs
2022 Gas Costs More than Doubled the Average Cost in 2020. Prices Have Dropped but are Still High in 2023…Why?
February 4, 2023

Last year, eyes were popping as the price per gallon of gas passed the five-dollar mark in most places. This is more than double the average gas cost per gallon in 2020, which was $2.17 per gallon, according to the U.S. Energy Administration. While prices are down from that five-dollar mark now, they have […]

Read More