Uncertainty around oversight of distributed ledger technology could reduce innovation

The regulation of new technology, including blockchain and artificial intelligence, is one of the top concerns for global financial services business going into 2017.

That is according to a study conducted by Synechron, a digital business consulting and technology services provider, which surveyed over 200 senior-level, global financial services business and IT decision-makers across the US, UK and Europe.

Almost 40% of the firms surveyed named dealing with regulation as their top priority this year, the study found.

While innovation remains on every firm’s agenda, uncertainty around the future regulation of blockchain – the distributed ledger of transactions and asset ownership technology that was initially established for the cryptocurrency bitcoin - could hamper tech development within financial institutions, it said.

Faisal Husain, co-founder and chief executive officer of Synechron, said in a statement: “Regulation, cost-pressure and outdated technology systems and operations are part of almost every client conversation, so it is no surprise these items topped their 2017 priorities list.”