Trust in the reliability of the financial system is crucial for its proper functioning and is a prerequisite if it is to contribute to the economy as a whole. Effective internal governance arrangements are fundamental if institutions individually and the financial system they form as a whole are to operate well.
Over recent years, financial institutions have been increasingly interested in outsourcing business activities also in order to reduce costs and improve their flexibility and efficiency. In the context of digitalisation and the increasing importance of new financial technology (fintech) providers, financial institutions are adapting their business models to embrace such technologies. Some have intensified the use of fintech solutions and have launched projects to improve their cost efficiency also in response to the intermediation margins of the traditional banking business model being put under pressure by the low interest rate environment. Outsourcing is a way to get relative
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