Magazine

Fintech Innovation Is Forcing Banks to Rethink Model Risk

Joe Breeden examines how growing partnerships between banks and fintech firms are reshaping approaches to model risk management. As financial institutions adopt increasingly sophisticated technologies through third-party relationships, responsibility for oversight, validation and governance cannot be allowed to fall between organisations. The article explores how banks and fintechs often view the same models through different lenses, balancing innovation, compliance and performance objectives. Panellists featured in the discussion emphasise the importance of transparency, validation, lifecycle monitoring and strong governance frameworks.