Banks must not outsource judgment to algorithms

Financial institutions are increasingly relying on automated systems for customer interactions, but supervisory expectations are shifting towards continuous oversight. Compliance is evolving from periodic checks to an embedded, persistent function within operational systems. This means banks cannot simply delegate critical decision-making to algorithms without maintaining human judgment and ongoing monitoring. The emphasis is on integrating compliance seamlessly into the technological infrastructure, ensuring that automated processes are constantly supervised and aligned with regulatory requirements and ethical standards.