Financial Markets’ 24/7 Operations Outpace Governance Structures
Financial markets operate 24/7, yet their governance structures often fail to keep up, says Kate Bohn, a financial services technology leader. Bohn highlights that while markets have been designed to function continuously, the decision-making processes governing them still rely on traditional schedules, creating a mismatch.
In an era of instant payments, shorter settlement cycles, and round-the-clock digital asset trading, banks encounter new challenges. Risk and liquidity levels can fluctuate while decision-making committees are inactive, leaving institutions vulnerable during off-hours. For instance, an automated process can identify an exception, assemble the evidence, and surface a decision at 2:17am, but the organization may only act on it during the next scheduled meeting, potentially days later.
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Bohn points out the tension between the need for judgment and accountability in decision-making and the pressure to match the speed of automated processes. She argues that while careful governance should not be replaced by automated approval, the focus should shift to redefining which decisions require human involvement. This involves determining which decisions can operate within pre-agreed authority and how humans can intervene when their judgment adds value.
With over 26 years of experience in global banks, including roles at Citi, Deutsche Bank, Lloyds Banking Group, Macquarie Asset Management, and Scotiabank, Bohn stresses the importance of balancing speed with prudence. Her unique background, blending academic and art curation with financial services, informs her Georgie & Cog series, which critiques the gap between transformation rhetoric and organizational reality. Bohn’s work emphasizes practical outcomes in complex, regulated environments.
