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The Financial Sector Regulatory Authority must keep an eye on a number of technologies that are expected to have a significant impact on financial services, according to the chairman of the self-regulatory board of governors.

“Finra is in a unique location and has a tremendous opportunity to continue to play a leadership role by having a truly forward-looking technology strategy,” Eileen Murray said during a virtual appearance Monday at Finra’s 2022 annual conference.

Murray, who is coming to the end of his six-year term on Finra’s board, cited several key technologies.

“It’s important for Finra to keep an eye on AI and the metaverse, but we’re defining this, which is still ongoing,” she said, noting that blockchain deserves attention as well.

The immersive worlds of the metaverse have previously been cited as a potential opportunity for wealth management companies.

The former co-director of Bridgewater Associates also highlighted the “tremendous opportunity” and challenges of advanced analytics. Murray said she’s seen advanced analytics on how to help Finra do things more efficiently internally, as well as help its members.

“If you look at advanced analytics, the goal is to take this massive amount of data across the organization and make it more usable, and better insights to perform and improve better decision making, Murray said. “I think this will lead to better regulation and more efficient operations in the years to come.”

“It creates an environment for the kinds of work that I think are much more exciting for employees,” she added.

Decentralized Autonomous Organizations, or DAOs, within the metaverse were also discussed during a panel discussion on “Hot Topics in Fintech.”

“There are some really interesting things happening in the trade on what they call these DAOs,” Alan Carlisledirector of compliance SoFi, said during the roundtable. “All that is is a group of people/computers forming their own organization, they create a set of rules, and then the rules are enforced by the blockchain.”

Carlisle pointed out the Bored Ape Yacht Club and Decentralized areas within the metaverse.

“If you look at the Bored Ape Yacht Club, there’s a very club feel to it, it’s like the early stages of Facebook, that exclusivity, that sense of place is what drives the value,” he said. . “[I]If you look at Decentraland, I think one of the companies at that conference has a building with a dance floor and everything in it.

While acknowledging that DAOs are a fascinating technology, Carlisle warned that they could pose challenges for the financial industry.

“What I think is important for us to watch at this point is that this is new and in many ways untested and I think the limits of securities law could be pushed in some of these cases,” he said.

Earlier this year, JP Morgan established a presence in the metaverse with the opening of a virtual salon. The bank also highlighted the business opportunities offered by the metaverse.

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