Dodd-Frank legislation, originally signed into law in 2010 by the Obama administrations, was a series of legislative compliance rules targeted to the financial service industry in response to the industry’s 2008 major crisis. With the recent announcement by the new Trump administration, the question remains as to what effect, if any, will their actions have on the financial technology industry?
The predictions in 2011, following the announcement of the original legislation, was that business would be forced to put more money into IT solutions to satisfy compliance, and as a side-effect, this additional funding to the back office systems, would spur new innovation with data management as a whole. For the business, the idea of a more comprehensive understanding of its data, would lead to competitive advantages. I think when we look back over the last six years, the SAP solution to the integrated systems, and the current trends, such as the Blockchain distributed ledger, we can conclude that IT has seen growth due to Dodd-Frank.
I believe that with the advantages that businesses have realized by concentrating on solutions to data management, along with the focus on integration across its sectors, this area will continue to grow for Information Technology, despite any attempt at the proposed reforms to the current legislation.
https://www.nytimes.com/2017/02/03/business/dealbook/trump-congress-financial-regulations.html?_r=0
NY Times Dealbook – Trump Moves to Roll Back Obama-Era Financial Regulations
Institutional Investor – How Blockchain Can Aid Dodd-Frank Compliance
http://www.wallstreetandtech.com/regulatory-compliance/dodd-franks-impact-on-it/229200184?pgno=3
Wall Street & Technology – Business Innovation Powered by Technology
It is interesting that your article mentioned blockchain as a potential solution to IT controls. I can see blockchain being used in the future to simplify the audit process. IT auditors can simply test the IT controls surrounding the blockchain, since the blockchain itself would support every transaction. Adopting blockchain is a step in accounting automation, which means less work for auditors.