# Explainer-What’s next for the EU AI Act? Author: Pal Sinha, Barnali Author URL: https://financedigest.com/author/pal-sinha-barnali Published: 2021-05-27 Category: TECHNOLOGY Category URL: https://financedigest.com/category/technology Meta Title: EU AI Act: What's Next? Provisional Deal Explained Meta Description: Learn about the provisional deal for AI rules in the EU, the process of drafting the law, and what happens post-legislation. Stay updated on the latest develop URL: https://financedigest.com/explainer-whats-next-for-the-eu-ai-act-2html ![undefined](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/digital-technology-1737287536735-compressed.jpg) _By **Matthew Williamson,** VP of Global Financial Services, Mobiquity_ **Going green by leveraging digital technologies** Sustainability has become a business critical initiative in banking and financial services, where banks of all shapes and sizes are starting to incorporate Environmental, Social and Corporate Governance (ESG) into their business strategies. The importance of digital [technologies in this process has sometimes been overlooked by the banking](https://www.financedigest.com/6-technology-trends-banking-2019.html "6 Technology Trends for Banking in 2019") and financial services industry. However, leveraging digital [technologies to drive sustainable outcomes is one avenue banks](https://www.financedigest.com/transforming-the-retail-banking-ecosystem-its-all-about-technological-innovation.html "TRANSFORMING THE RETAIL BANKING ECOSYSTEM: IT’S ALL ABOUT TECHNOLOGICAL INNOVATION") can pursue to create a sustainable future, and awareness is on the rise. In our latest research report, ‘A Benchmark for Sustainable Banking’, a survey of banking executives at corporate and retail [banks in the UK shows that almost three quarters (72%) of UK banks are embracing digital technology](https://www.financedigest.com/the-rise-of-biometric-technology-in-banking.html "The rise of biometric technology in banking") to make their business operations greener. In addition, the research also reveals what digital initiatives banks are utilising to be more sustainable, including intelligent automation, the digitisation of paper processes and [machine learning](https://www.financedigest.com/machine-learning-engineer-jobs.html "Machine learning engineer jobs"). By embracing digital solutions such as these to improve sustainability, [banks can improve operational efficiency while at the same time](https://www.financedigest.com/stock-pickers-reckon-its-time-to-move-on-from-central-banks.html "Stock pickers reckon it’s time to move on from central banks") making their business operations greener. It therefore makes business sense for banks and financial institutions to pursue a sustainable [future by leveraging digital technologies](https://www.financedigest.com/technology-skills-and-servitization-a-brighter-future-for-manufacturing.html "TECHNOLOGY, SKILLS AND SERVITIZATION: A BRIGHTER FUTURE FOR MANUFACTURING?"). But, what are the [risks for those banks](https://www.financedigest.com/governments-and-central-banks-risk-inflation-bank-of-england-has-done-its-bit-now-the-politicians-turn.html "Governments and central banks risk inflation, Bank of England has done its bit, now the politicians’ turn") that ‘sit on their hands’, and why are some still not taking action? **Overcoming business frictions around COVID-19 and industry demands** Our research reveals that while many banks understand the importance of sustainability and how digital can help, it also finds that less than a third of [banking executives](https://www.financedigest.com/bank-of-england-fines-former-tsb-executive-over-2018-it-failure.html "Bank of England fines former TSB executive over 2018 IT failure") in the UK (31%) believe sustainability is a top concern at board level. In addition, less than half of UK banks (45%) are planning for sustainability initiatives, citing the main barriers as COVID-19 and industry demands. ![Matthew Williamson](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/matt-w-450x630-1737287536803-compressed.jpg) Matthew Williamson This is especially concerning, as it demonstrates a friction between understanding and implementing sustainability among banking executives. Indeed, COVID-19 should not be viewed as an obstacle to becoming more sustainable – it should actually be viewed as an accelerator. The pandemic has shifted business online and facilitated the growth and adoption of [digital technologies across the banking and financial services](https://www.financedigest.com/how-to-enhance-banking-services-with-digital-performance-intelligence.html "HOW TO ENHANCE BANKING SERVICES WITH DIGITAL PERFORMANCE INTELLIGENCE") sector. By embracing this and accelerating [digital transformation across all areas of the business](https://www.financedigest.com/3-reasons-why-businesses-get-stuck-at-the-starting-gate-of-digital-transformation.html "3 Reasons Why Businesses Get Stuck At The Starting Gate Of Digital Transformation"), banks will future-proof their business as we emerge from the pandemic. However, for those that fail to prioritise sustainability, the environmental impact will be significant, and it will also lead to reputational concerns for the banks themselves. Customers may decide to vote with their feet, while investors may pressure banks to improve their performance on sustainability as it becomes a key [business metric](https://www.financedigest.com/5-fx-metrics-your-business-should-be-tracking.html "5 FX METRICS YOUR BUSINESS SHOULD BE TRACKING") in the industry. In the future, banks may find that attracting customers and retaining talent becomes increasingly difficult as [banking continues to change](https://www.financedigest.com/exclusive-world-bank-seeks-more-funds-to-address-climate-change-other-crises-document.html "Exclusive-World Bank seeks more funds to address climate change, other crises -document"). Those who aren’t practicing what they preach when it comes to sustainability may be [left behind](https://www.financedigest.com/click-and-collect-or-get-left-behind.html "Click and Collect or get left behind") by the competition. **Harnessing** [sustainability to retain customers and save costs](https://www.financedigest.com/cobots-in-the-financial-workplace-reducing-costs-attracting-talent-and-enhancing-sustainability.html "Cobots in the financial workplace: Reducing costs, attracting talent and enhancing sustainability") The benefits of sustainable banking are clear. By harnessing sustainability effectively, [banks and financial institutions open](https://www.financedigest.com/barclays-private-bank-opens-new-office-in-verbier-switzerland-for-2022-23-ski-season.html "Barclays Private Bank opens new office in Verbier, Switzerland for 2022/23 Ski Season") up a range of benefits, from reducing costs and increasing operational efficiencies to being more environmentally friendly and retaining existing customers while growing new ones. Our research supports this, as those [banks that implemented sustainability initiatives saw the benefits of doing so, with 2 in 5 (40%) UK banks reporting](https://www.financedigest.com/how-banks-can-avoid-regulatory-reporting-mistakes-with-a-good-dose-of-automation.html "HOW BANKS CAN AVOID REGULATORY REPORTING MISTAKES WITH A GOOD DOSE OF AUTOMATION") cost savings, customer retention and growth through harnessing sustainability initiatives. In order to take advantage of these benefits, senior decision makers at [banks and financial institutions may want to start looking at sustainability strategies](https://www.financedigest.com/attacking-banking-and-fintech-fraud-head-on-through-ai-infused-strategies.html "Attacking Banking and Fintech Fraud Head-On Through AI-Infused Strategies ") holistically – ensuring that sustainability is prioritised across all areas of the bank, both internally and externally. In addition to supporting ESG externally, [banks need to become](https://www.financedigest.com/banks-need-to-become-a-lifestyle-brand.html "Banks need to become a lifestyle brand") more sustainable themselves. The fastest way of achieving this is by using [digital technologies](https://www.financedigest.com/you-cant-get-faster-than-that-spring-statement-update-delivered-digitally-as-it-happens-with-app-driven-technology.html "‘You Can’t Get Faster Than That’ – Spring Statement Update Delivered Digitally As It Happens with App-driven technology") to optimise internal processes. Overall, implementing [digital technologies will not only help banks](https://www.financedigest.com/britains-digital-banks-need-support-amid-banking-turmoil-trade-body.html "Britain’s digital banks need support amid banking turmoil – trade body") drive operational efficiencies internally and externally, accelerate innovation, reduce costs and ultimately retain and grow customers, it also leads to more sustainable outcomes as a business. This is what makes sustainable [banking a ‘win-win’ for the banking and financial services](https://www.financedigest.com/britain-seeks-to-boost-banking-services-from-fintechs.html "Britain seeks to boost banking services from fintechs") sector. **[Future of banking:](https://www.financedigest.com/bank-of-england-officials-split-over-future-path-for-rates.html "Bank of England officials split over future path for rates") A digital lifestyle enabler with an eco-conscience** Our research shows that there is a golden opportunity for traditional and [challenger banks](https://www.financedigest.com/big-banks-can-be-challengers-too.html "Big banks can be challengers too") to accelerate their use of digital technologies in order to drive sustainability, especially as the role of the bank in society continues to change. Today, [banks need](https://www.financedigest.com/struggling-banks-need-to-modernise-and-improve-software-quality-management.html "Struggling Banks Need to Modernise and Improve Software Quality Management") to embrace their responsibility as part of the community, prioritising financial inclusion, climate change and societal issues to support the community they serve better. For example, Community Banking Hubs introduced [recently](https://www.financedigest.com/the-recent-bank-of-england-meeting-the-biggest-rate-hike-recession-warning-and-the-fallout.html "The recent Bank of England meeting, the biggest rate hike, recession warning and the fallout") in the UK demonstrate the changing role of the bank, as well as the impact of COVID-19 on customer expectations. These hubs allow customers to access their cash on specific days at specific venues, in place of traditional branch banks. This allows banks to [support those customers that may not wish to use digital](https://www.financedigest.com/fintechs-support-of-ukraines-digital-businesses-can-be-used-as-blueprint-across-the-world.html "Fintech’s support of Ukraine’s digital businesses can be used as blueprint across the world") services while scaling digital offerings to their digital first customers. This ensures that no one is left behind as we shift increasingly to a digital first [banking experience](https://www.financedigest.com/transforming-the-banking-experience-to-be-mobile-first-and-people-centric.html "Transforming the banking experience to be mobile-first and people-centric") that retains a human touchpoint. The bank of the [future will not only be one that bridges the physical and digital](https://www.financedigest.com/smarter-safer-stronger-cybersecurity-is-now-critical-to-digital-future.html "Smarter, safer, stronger cybersecurity is now critical to digital future") banking experience, as the Community Banking Hub model shows. [The bank of the future](https://www.financedigest.com/bank-of-the-future.html "Bank of the future") will also be a digital lifestyle enabler that has an eco-conscience, and one that embraces sustainability. This will enable banks to carve out new revenue streams as customers increasingly [choose](https://www.financedigest.com/5-things-to-consider-when-choosing-a-challenger-bank.html "5 Things to Consider When Choosing a Challenger Bank") to bank with businesses that prioritise sustainability. --- This blog is powered by Superblog. Visit https://superblog.ai to know more. ---