habits and income flows. however, on the other side, this can result in ever growing information asymmetries, raising ethical considerations on how data is used. the central bank ’ s expectation is that banks ’ operating models are more than technology and innovation driven. as outlined by my colleague grainne mcevoy ( mcevoy 2018 ), the greatest risk to consumers comes not from technological developments, but from the culture of the firms in charge of the technology. boards and senior management need to pay particular attention to not only ‘ can we ’, but ‘ should we ’, particularly in the use of customer data. this is an area that we will continue to increase our focus on, to ensure that the people who lead the firms we regulate and supervise set the right tone from the top and create a culture that minimises the risk of misconduct. on a very practical level we have recently proposed a senior executive accountability regime ( rowland 2019 ) to drive better governance structures in firms which identify which individuals are responsible for what. diversity can meaningfully contribute to improved decision - making, risk management and reducing the likelihood of group - think. we are therefore committed to bringing improvements in the levels of diversity across regulated financial services firms. if innovation is to be delivered sustainably, it is essential to recognise that this cannot be attained without a culture and mindset to match and support it. research by mckinsey ( mckinsey 2017 ) suggests that cultural challenges are among the major barriers to digital effectiveness across all industries. outsourcing the central bank is strongly focused on outsourcing [ 3 ] due to its extensive use across financial services firms. while it is possible to outsource a service, you cannot outsource the risk. the responsibility and accountability for ensuring security and resilience of a firm ’ s data and services remains firmly with its board. advances in cloud computing have been notable. such technology has significantly changed how firms and companies work, facilitating streamlining of processes and infrastructure and also reducing costs. recent years has also seen the increase of outsourcing to the cloud as a model. with all outsourcing arrangements, boards and senior management must understand that they are placing the resilience of their firm into the hands of a third - party and while they may be able to monitor the service during normal operation, when something goes wrong, they are reliant on someone else to fix it. risk management as firms take advantage of technologies and further embed them into

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