Beyond Financial Inclusion: Reshaping the Regulatory Landscape for Virtual Banks

• To identify and mitigate risks early, ensuring system stability and preventing crises.

• Develop dynamic risk assessment tools for AI, blockchain, and biometrics.

• Conduct regular audits and stress tests.

• To ensure fairness, transparency, and accountability in AI-driven financial services.

• Mandate ethical AI frameworks.

• Require transparency in AI decision-making processes.

• To foster innovation while enabling regulators to understand and manage new technologies.

• Expand regulatory sandboxes for testing AI, blockchain, and biometrics.

• Refine policies based on observed outcomes.

• To protect customer data and maintain trust in digital banking systems.

• Implement mandatory encryption protocols.

• Establish real-time threat monitoring systems.

• Enforce strict biometric data protection.

• To build public trust and ensure technology is seen as an enabler, not a barrier.

• Launch public education campaigns on technology benefits and risks.

• Ensure transparency in how customer data is used and protected.

• To ensure fair competition and seamless integration of technologies across the ecosystem.

• Enforce interoperability standards.

• Introduce policies to prevent monopolistic practices.

• To address cross-border challenges and promote consistency in global financial regulation.

• Participate in international forums to harmonise technology-centric standards.

• Collaborate with global regulators on shared challenges.

• To stay ahead of technological advancements and address new risks promptly.

• Establish dedicated units to track emerging trends.

• Adapt regulations in real-time based on technological developments.