[Article] Does remuneration regulation help the adoption of Fintech and the sustainability agenda by banks?

Bankers’ remuneration reforms and new challenges

Ania Zalewska

Abstract: The lack of in-depth understanding of the effects of the post Global Financial Crisis (GFC) remuneration reforms creates a barrier to understand the impact of the reforms on how banks innovate to adopt Fintech and the sustainable banking agenda. If the existing remuneration regulation limits the openness to innovation and strategic change, then the regulation needs to be revisited and modified. The article discuses the existing evidence on whether the remuneration reforms that followed the GFC are achieving what their designers intended and, alongside this, whether they are fit for purpose given the ongoing change in the structure and functioning of the financial sector induced by the fast-developing financial technology, the challenges set by climate change, and the need to adopt the sustainability agenda.