Financial markets under increasing pressure
The geopolitical environment remains bleak and unpredictable. High but volatile expectations for AI dominate the outlook for the global economy and financial markets. Digitalisation and tokenisation are accelerating the pace. Cyber risks are growing. Governments are vulnerable due to high debt and rising interest rates. These interconnected technological and financial vulnerabilities are putting the financial system under growing pressure at a time when governments’ ability to absorb new shocks is diminishing. Given the rising number of incidents, the AFM views cybersecurity as an acute systemic risk for the sector. Although the consequences of successful cyberattacks on a financial institution can be far-reaching, this issue still receives little public attention. This is according to Laura van Geest, chair of the Executive Board of the Dutch Authority for the Financial Markets (AFM), speaking at the presentation of the Trend Monitor 2027 report published today. The AFM has today also published in-depth analyses on the Great Wealth Transfer, crypto markets and its new multiannual strategy for 2027-2030.
In short
- Cyber threat underscores need to strengthen resilience
- Great Wealth Transfer makes consumers vulnerable to scams
- Growth in crypto holdings calls for better rules and centralised supervision
Cyber threat underscores need to strengthen resilience
Laura van Geest, chair of the Executive Board of the AFM: “The question is not whether the financial markets will be hit by a cyberattack, but when and how. We are concerned about this, as is the sector. Yet this issue still receives little public attention. Even with all the measures financial institutions are taking, they cannot prepare for this reality on their own. This requires joint efforts on the part of institutions, governments, supervisory authorities, businesses and consumers. To prevent problems and to address and resolve unforeseen situations. Both within and outside the financial sector. Nationally and internationally. That is how we will strengthen our resilience.”Great Wealth Transfer makes consumers vulnerable to scams
The coming decades will see increasing transfers of wealth through inheritances and lifetime gifts. This will open up new possibilities for consumers and reshape demand for financial products and services, to which providers will respond. There will consequently be opportunities for wealth accumulation but also risks if consumers use complex or unsuitable products, with heirs often being especially vulnerable to deception. The wave of inheritances may also exacerbate inequality of opportunity in the housing market, for example when inherited wealth is used to purchase a home.Growth in crypto holdings calls for better rules and centralised supervision
A growing number of people in the Netherlands – now around one in eight – hold crypto-assets. Although most consumers only invest small amounts, the risks remain significant. Crypto-assets are often highly volatile and many consumers have difficulty understanding complex products and services such as staking, lending and DeFi. Fraud is also a problem, as crypto holders report encountering it more often than traditional investors. Oversight to ensure clear information and marketing, combined with appropriate rules to address high-risk developments, is essential, and stronger, more centralised European supervision is needed to protect consumers over the long term.More information
Download 'Trend Monitor 2027' (pdf, 5.9 MB)Download 'Passing wealth to future generations' (pdf, 2.3 MB)
Download 'Ongoing challenges for consumers in the crypto market' (pdf, 1.5 MB)
Visit our webpage about the Trend Monitor
Read more about our report 'Passing wealth to future generations'
Read more about our report 'Ongoing challenges for consumers in the crypto market'
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