FinTech Global FS Regulatory Round-up - w/e 14 August 2026

UK

BoE paper on cloud outsourcing and competition in UK banking

The Bank of England (BoE) has published a working paper examining how banks' outsourcing agreements with cloud service providers (CSPs) affect competition in the UK banking sector. Key findings include:

• CSP spending is associated with lower operating costs and higher deposits, with reduced-form effects concentrated among large institutions;
• increases in capital requirements are associated with higher CSP spending; and
• the demand-side benefits of CSP adoption are substantially larger for small and medium banks and building societies.

The views expressed are those of the authors and do not necessarily reflect those of the BoE. [14 Aug 2026] #Cloud

PSR: Annual report 2025/26

The Payment Systems Regulator (PSR) has published its annual report and accounts for 2025/26, outlining its activities during the year in relation to competition and innovation in payment systems, user protections and developments in the UK's payments landscape. Areas covered include authorised push payment (APP) fraud, open banking, and transparency and competition in card markets. [12 Aug 2026] #Payments

Crypto and Digital Assets APPG writes to banks

The Crypto and Digital Assets All-Party Parliamentary Group (APPG) has published a template version of its ‘Dear CEO’ letter to UK banks, asking them to explain their approach to providing banking services to regulated UK crypto and digital asset businesses. The APPG launched its inquiry into Access to Banking Services in July 2026 and is seeking written evidence from banks, crypto and digital asset businesses, regulators and other interested stakeholders until 31 August 2026. It will then publish a report setting out its findings and recommendations to HM Government. [11 Aug 2026] #Crypto #DigitalAsset

Europe

ECB publishes survey results on 2026 euro area cash use

The European Central Bank (ECB) has published the findings of its latest survey on the use of cash by companies in the euro area, covering 8,205 firms across all 21 euro area countries.

In 2026, 92% of companies selling goods and services at physical locations reported accepting cash, up from 90% in 2024, suggesting a rebound following the decline seen during and after the pandemic.

Acceptance of card payments remained broadly stable at 88%, while acceptance of mobile payments rose sharply from 36% to 68% over the same period. 25% of firms reported having taken steps to promote digital payments, including investing in cashless tills, and 13% had introduced self-checkout terminals. [13 Aug 2026] #Payments

Australia

FSC Shaping Advice Summit 2026: key takeaways

The Financial Services Council (FSC) has published its key findings from its Shaping Advice Summit in Sydney on 30 July 2026. Held against a backdrop of ongoing regulatory reform, rising compliance costs and rapid technology adoption, several themes emerged across the summit's 11 sessions, including the role of AI in improving adviser productivity while preserving human judgement. [13 Aug 2026] #AI

APRA: Bendigo and Adelaide Bank admits to breaching its BEAR obligations in relation to cyber incident

The Australian Prudential Regulation Authority (APRA) has announced that, following a formal investigation, Bendigo and Adelaide Bank Limited (Bendigo Bank) has conceded it breached its obligations under the Banking Executive Accountability Regime (BEAR) in relation to a 2023 cyber attack involving its Alliance Bank business.

Significant weaknesses in customer authentication controls for online banking were identified, including password settings that permitted very weak passwords and system design features that enabled a threat actor to identify valid customer IDs. A number of those weaknesses had been identified by penetration testing conducted in 2020 but were not addressed prior to the attack. Between 3 and 7 March 2023, an unidentified hacker gained access to approximately 257 customer accounts and made 286 unauthorised transactions totalling about $490,000 affecting 87 separate Alliance Bank customers. Bendigo Bank was unable to recover about $140,000 but reimbursed all affected customers.

APRA has commenced civil penalty proceedings in the Federal Court against Bendigo Bank, with the parties proposing a pecuniary penalty of $8 million in respect of its contraventions of the BEAR, subject to Court approval. APRA noted that the historical control weaknesses were satisfactorily remediated following the cyber attack and that it does not currently have concerns regarding the adequacy of Bendigo Bank's information security controls.  [11 Aug 2026] #Cyber

Thailand

SECT and BoT engage with digital asset business operators

The Securities and Exchange Commission Thailand (SECT) has announced that, in collaboration with the Bank of Thailand (BoT), it held a meeting with digital asset business operators to discuss supervisory approaches for stablecoin transactions, with the aim of reducing the risk that such transactions may be used for money laundering, cybercrime, or the circumvention of regulations related to international money transfers.

Regulations to implement the Travel Rule are expected to be issued in August 2026, and come into effect in February 2027. [7 Aug 2026] #DigitalAsset #Stablecoin #Cyber

Philippines

BSP: Responsible use, strong governance are keys to unlocking AI's potential

The Bangko Sentral Ng Pilipinas (BSP) has published a press release in relation to the BSP AI Summit 2026 on 27 July 2026. The event gathered regulators, banking industry leaders, and tech professionals to discuss the responsible use of AI. BSP Governor Eli M. Remolona, Jr. underscored AI's potential to create new opportunities for consumers and businesses. He stressed the need for strong governance to manage emerging risks, and also that AI should complement rather than replace people.

BSP Deputy Governor Lyn I. Javier reaffirmed the BSP's commitment to ensuring that appropriate safeguards are in place to protect consumers as AI continues to transform financial services.

Participants shared insights on how AI is being used to enhance customer service, strengthen fraud detection, and boost operational efficiency. Discussions also highlighted the importance of high-quality data in maximizing AI's benefits and supporting better risk management and decision-making. [9 Aug 2026] #AI

US

FINRA publishes cybersecurity effective practices framework for member firms

The Financial Industry Regulatory Authority (FINRA) has published a framework of 12 cybersecurity principles and effective practices designed to assist member firms in strengthening their cybersecurity programmes. The guidance is informed by member firms' regulatory obligations, industry risk principles, and observations from FINRA's member firm oversight. Each practice is scalable to firms of all sizes and adaptable based on a firm's risk profile, business model, and technology complexity, with the aim of mitigating the risks of unauthorised access to firm systems and customer information and disruptions caused by threat actors or system failures.

FINRA has clarified that the framework does not create new legal or regulatory requirements or new interpretations of existing requirements, nor does it relieve members of any existing legal or regulatory obligations. Member firms are encouraged to use the framework as a benchmarking tool when developing or updating cybersecurity practices.  [Aug 10, 2026] #Cybersecurity

NY Fed publishes summary of 2026 Innovation Conference on technology and finance

The Federal Reserve Bank of New York (NY Fed) has published a summary of its 2026 Innovation Conference, held in June 2026, which explored recent innovations in technology and finance and the critical role regulators and the private sector play in supporting modernisation and stability. The conference covered three key themes:

• AI governance and coherence, with speakers emphasising that governance must be embedded in system architecture from inception and that AI adoption increases capacity but does not replace human judgment;
• evolving cybersecurity and threat environments arising from AI adoption, including a growing need for coordinated cross-jurisdictional regulation; and
• interoperability in digital assets, with speakers noting that tokenised assets and stablecoins deliver limited value in isolation, and that technologies such as tokenised financial assets, interoperable payment rails, and programmable AI agents working together could unlock new capabilities including 24/7 settlement, real-time liquidity, and global multicurrency transfers.  [Aug 4, 2026]  #AI #Cybersecurity #DigitalAsset #Stablecoin