In a recent update to an annual survey, Thomson Reuters finds that, at 85% of the globally significant financial institutions (G-SIFIs), the board has at least “some involvement” in their firms’ exploration of regtech solutions. Nearly 40% of those firms report their board to be “fully engaged” – up from 13% last year. And 21% of them have added people with specialist skills or otherwise invested in their ability to better consider developments in fintech, insurtech and regtech – up from a mere 2% in the prior year.
Yet growth of the industry may prove stunted without adequate support, and the Thomson Reuters survey identifies three key areas where regulators, governments and relevant supra-national bodies could provide valuable assistance: clear messaging on regulatory expectations, engaging with the industry (both startups and supervised firms), and by providing support for innovation through incentives and other encouragement.
Some have taken heed. The Hong Kong Monetary Authority (HKMA), for instance, recently issued a request for proposals, seeking support with “facilitating the adoption of regulatory technology by the banking industry.” The Monetary Authority of Singapore (MAS) has long been a leader in actively promoting the local fintech and regtech scene. Most notably, for my firm, it has devoted specific attention to the opportunity for regtech to help address the challenges of culture and conduct related risks.