The Financial Conduct Authority’s chief data, information and intelligence officer Jessica Rusu has said technology can be “a force for good” but comes with many risks.

Speaking at the Money 2020 Amsterdam event last week (June 8), Rusu explained that the increase in firms suffering from cyber-attacks demonstrates the risks that arise through innovation.

“Looking through the lens of a regulator, having spent many years in big tech, fintech and traditional banking roles – I see that innovation and the role of technology in transforming markets is both a risk to finance, as well as an opportunity,” she said.

“The forces of digital revolution continue to see growth in fintech, as well as new business models powered by artificial intelligence. And while this technology can be a force for good, we also see an increase in firms suffering from cyber-attacks.”

Rusu explained that many consumers are considering alternative forms of finance such as crypto.

She said a recent study found that 55 per cent of Bitcoin holders bought it for the first time last year and now, one in five UK residents own some form of crypto.

“Regulators are right to be concerned, particularly in light of the $60bn (£49bn) collapse of the so-called stablecoins Luna and TerraUSD in May, with consequently distressing impacts on retail consumers,” she said.

“There continue to be significant risks, especially for retail consumers, many of whom are enticed to purchase unsuitable or inappropriate products via social media.”

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