The writer is a former chief executive of hsbc

Whenever bankers got also smart and our companies also complex, most of us suffered the effects. the 2008 financial crisis moved so many of us since the banks were woven into all our everyday lives. society had been exposed to dangers it didnt understand, and we also all paid the price via government-backed bailouts.

These days, indicators tend to be flashing once again. a number of the elements are familiar: huge, developing businesses relied on by the remainder of culture that will do grave damage if they fail, or deliver poor outcomes with regards to their customers. but this time this is the technology industry rather than the financial that is leaving us all exposed.

The risk for consumers if tech companies deliver bad effects understanding known as conduct risk in the jargon of my trade happens to be just like grave as that from economic services. but we're maybe not organised to manage it. the electronic economic climate is eating the old economy as well as the governance frameworks we now have in position to cope with this transition are insufficient.

So who regulates big tech? the government promises an innovative new digital markets product within the competition and markets authority, but its remit will be mostly limited by stemming anti-competitive behavior, and details are scant. a promisedonline harms billis long delayed. it all sounds worryingly vague.

My 30 years as a banker required us to check out the future and expect dangers. i can confidently state that for tech companies, the warning signs tend to be showing. we ought to act now.

The pandemic features emphasised our dependence on technology. its not merely the interminable video telephone calls and/or technology that underpins deliveries to the locked-down doors. this is the hills of information that determine the ads we come across even as we scroll through protection of recent coronavirus briefing. digital transformation is sweeping through my business, too. consumers have actually squeezed years-worth of adoption of apps and online financial into just a couple of months.

The dangers go much deeper than the risk of hastily handled change. the algorithms that regulate how much work delivery drivers have and everything we see once we use the internet are not any better understood than the structured credit products that brought the banking system to its legs in financial crisis.

We must handle the potential risks of disinformation and discover ways to reasonable content. we need to know the way prejudice is verified and developed by algorithm. when we know how this works, we have to be obvious who's in charge of it all. you cant sack an algorithm.

Nothing for this is to state an emergency from the scale of 2008 lies nearby. however it does soon add up to a substantial threat, and another that people shouldn't dismiss. the absolute complexity associated with the danger provided by big tech makes the challenge of tackling it daunting, but we can get-off to a good beginning if we utilize the work done in financial solutions as a model.

The financial crisis taught us that mindful oversight will become necessary when the general public interest is based on businesses that exist to satisfy the needs of exclusive capital providers. before 2008, regulators way of carry out risk in banking ended up being whatever they labeled as axioms based deliberately light touch. it relied way too much on financial institutions capabilities to govern themselves and it failed. the similarities with your present approach to big tech tend to be hitting.

In years after the crisis, regulators and politicians in the uk would not settle-back. instead, they created the financial conduct authority, that has established itself as a premier conduct regulator for monetary services.

The fca made an important effect in two key areas which are strongly related the technology firms operating the latest economic climate. it pushed financial institutions to communicate in a clearer means, particularly about their fees. this allowed customers in order to make informed choices about the trade of worth between by themselves and their particular bank. in addition it caused it to be much easier to identify who was accountable if things went incorrect. this had a confident affect businesses diligence and appetite for risk, which enhanced the outcome because of their customers. not a simple trip, although fca revealed that it can be done.

We truly need similar aspiration to address the potential risks posed by technology today. simply put a, world-leading digital conduct authority. this could remove a complex mesh of interlacing institutions, and be a powerful, dependable regulator might hold individuals to account. its purpose is quite simply to make sure good outcomes for consumers, and a fair change of price for people who utilize technology platforms.

That would be best for consumers, and eventually for big tech also.