FCA Chair hints that new regulation addressing data ethics in the FinTech space may be on the horizon.
Will societies of the future be ruled by algocracy, in which algorithms decide how humans are governed? Charles Randell, Chair of the Financial Conduct Authority (FCA) and Payment Systems Regulator, addressed how to avoid this hypothetical scenario in a broad-ranging speech on that he delivered on 11 July 2018 in London.
Contributing Factors to an Algocracy
According to Randell, the following three conditions could collectively give rise to a future algocracy:
- If a small number of major corporations were to hold the largest datasets for a significant number of individuals (as is currently the case)
- Continuing vast and rapid improvements in artificial intelligence and machine learning that allows firms to mine Big Data sets with greater ease and speed
- Further developments in behavioural science allowing firms to target their sales efforts by exploiting consumers’ decision-making biases