With the increasingly close integration of Finance and science and technology, the ethical issues of financial science and technology have come into people’s vision. Xiao Gang, former chairman of China Securities Regulatory Commission, stressed in Beijing on the 14th that the anomie of financial science and technology ethics may amplify financial risks and endanger public safety. Strengthening the ethical governance of financial science and technology is an important defense line to maintain financial security and stability.
On the same day, the 50 people forum on China wealth management released the topic report on building an ethical governance system for financial technology in Beijing. The report points out that the current “digitalization”, “virtualization” and “Networking” attributes of financial technology make the process of financial activities suffer from problems such as low default cost, privacy information leakage and information asymmetry. In addition, the externality, profit seeking and high leverage of the financial industry itself lead to more prominent ethical problems.
According to the data provided in the report, in 2020, Bank Of China Limited(601988) , securities, insurance, trust, fund and other institutions independently carried out and provided technical services to financial institutions, with a total scale of 7.5 trillion yuan, and 23 financial technology Unicorn enterprises, accounting for about 41% of the total number of global financial technology Unicorn enterprises. This means that once there is an ethical anomie in financial technology, it will often cause great social harm.
As the leader of the project, Xiao Gang said when interpreting the report that the risk events and adverse effects caused by privacy infringement, data leakage, monopoly data, data gap and other problems have occurred from time to time in recent years, and the problems of algorithm discrimination and algorithm control are prominent. For example, technical failures such as the imperfection of the underlying algorithm and the deviation of the technical route may cause a chain reaction once the risk is triggered in specific scenarios such as high-frequency trading and Beijing Vastdata Technology Co.Ltd(603138) and trigger the “Butterfly Effect” of rapid risk diffusion.
Therefore, the report proposes that the ethical governance of financial science and technology should make the ethical risk controllable. With the rapid development and change of financial technology, high complexity and strong uncertainty, it is necessary to install a “control valve” and establish a prudent evaluation system. For the application of new technologies and new product development, there should be a clear control process and accountability mechanism to ensure that the behavior can be interrupted, the process can be reversed and the responsibility can be traced.
The report suggests that the people’s Bank of China should lead the establishment of a special financial science and technology ethics committee to guide and coordinate the construction of the financial science and technology ethics governance system. At the same time, from simplicity to complexity, from easy to difficult, we should build a multi-level financial science and technology ethics rule system, implement financial science and technology ethics standards, and strengthen the accountability for violations of financial science and technology ethics.
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