OCC’s Hsu: FIs wise to include risk, compliance in tech product development

Digital banking

As financial institutions (FIs) mull potential growth opportunities with digital asset and artificial intelligence (AI) tools, one regulator warned against leaving risk and compliance teams out of the loop.

Michael Hsu, acting head of the Treasury Department’s Office of the Comptroller of the Currency (OCC), said in a speech Friday at an American Bankers Association conference that some FIs myopically view risk and compliance considerations as “drags on innovation and profitability.”

Instead of rushing to market, Hsu said FIs should consider a more measured approach, in which risk and compliance considerations are embedded into a product’s development from the start.

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