Digital disruptions in banking and capital markets

Four forces driving digital disruption in banking and capital markets

Dancing with disruption: Have you mastered the steps?
In the past several years, Internal Audit groups in banking and capital markets (B&CM) organizations have embarked on a remarkable journey in response to skyrocketing regulatory demands. Recently, they’ve been increasingly focused on helping their organizations respond to changes in internal behaviors, such as conduct and culture, information and communication technologies, and other disrupters. As a result, B&CM Internal Audit groups are arguably far more advanced than many others, particularly those in the largest and most well-resourced institutions.

Understandably then, Internal Audit departments in other B&CM institutions are still developing, or are in the process of transforming, their strategies to address multiple facets of the current environment. The notion of dancing with disruption—and mastering the steps of this dance—recognizes that disruption will continue to characterize the B&CM industry. Internal Audit groups shouldn’t resist disruption. Rather, they should do what they can to stay a few beats ahead of it.

Deloitte sees four forces driving disruption in banking and capital markets organizations and their internal audit groups:

• Disruptive digitalization
• Disruptive business models
• Disruptive data
• Disruptive regulatory demands

For an overview of these four forces, read Dancing with disruption: Have you mastered the steps?

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RPA, CI, and analytics in the banking and capital markets industry

Auditing the risks of disruptive technologies: Keeping the tempo
We’re in the midst of an exciting convergence. Technological advances and trends in advanced analytics, robotic process automation (RPA), and cognitive intelligence (CI) are rapidly reshaping business models, improving productivity, and enabling innovation in the way B&CM organizations operate and conduct business.

This makes for an intricate pas de deux. As B&CM companies continue to adopt emerging automation technologies, IA must proactively assess and gain insight into the new risks associated with these technologies. Doing so will enable IA to provide comfort to senior management that appropriate controls are being implemented to prevent and detect new and emerging risks.

Read Auditing the risks of disruptive technologies: Keep the tempo to take a closer look at the specific risk exposures associated with disruptive digitalization in banking and capital markets and how IA can prepare.

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How we can help

As with the specific impacts of digital disruption in banking and capital markets, the specific needs of each organization—and of each Internal Audit function—will vary. But the overall challenge is the same: Get comfortable with discomfort. And learn to dance with disruption.

Deloitte Risk and Financial Advisory’s globally recognized practice can help you proactively manage and prepare for disruption. Our people, tools, and processes offer strategic solutions to assist you in emerging areas, including cognitive intelligence, robotic process automation, and predictive data analytics.

Disruption is here to stay. Leverage our experience to help you master the steps.

Learn more about how Deloitte’s Internal Audit practice can help you.

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