Financial Markets Authority boss Rob Everett says that: “The governance of conduct risk in the banks requires serious attention.”

Everett was optimistic the that conduct laws would be passed, covering banks and insurers. This would bring them in line with conduct laws that cover other financial services providers including fund managers and financial advisers.

The FCA commented on the core of this issue, stating that “firms are often using their own values to articulate how they bring the conduct rules to life. However, there was insufficient evidence to be confident that firms have clearly mapped the conduct rules to their values.”

Research shows that the way behaviors spread through society is similar to the way diseases move through a population. While it turns out that the factors that encourage the spread of disease are quite different from those that encourage the spread of behaviors, the result is the same.

By understanding the forces that encourage behaviors to spread we can learn to be proactive in our reactions to them. At Starling, we have turned this insight into intuitive tools that managers can use to predict how and where behaviors of interest will spread so they can reduce risk.

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