Legal Framework to AI-Driven Technologies in Banking: A Global Comparative Analysis on Consumer Privacy

Abstract

Financial technology has transformed the global financial landscape with its rapid growth and this growth and extent to which banking industry will be shaped by financial technology depends on the nature of competition that arises from innovation by Banks. The framework for this research is tied to the understanding of the evolving dynamics in financial technology with a wider context of regulatory environments, global trends in technology and economic development. The aim is to identify this competition and its impact on banks. This paper explores policies, law and technological innovations with the purpose of emphasizing the approach which provides a regulation that is balanced and helps in further innovation and protection of consumers, market integrity and financial stability. The researcher is corroborated with doctrinal methodology which helps in analyzing regulatory policies, judicial precedents and primary legal instruments augmented by a comparative analysis to adapt lessons from other jurisdictions with a view to assessing their effectiveness, identifying gaps and bringing best practice. The researcher has made comparisons to jurisdictions of different countries in order to discuss the steps they have taken in order to create a financial technology ecosystem through both the central bank and the securities and exchange commissions, while also covering regulatory uncertainty, weak infrastructural capacity and enforcement challenges.