Hong Kong Monetary Authority releases regulatory technology report
Maybe not, but the post-COVID acceleration of digital transformation generally should flow through to digitalisation of regulation and compliance.
However, according to the Hong Kong Monetary Authority (HKMA), regulatory technology (Regtech) has a perception problem. Despite having been tapped for quite some time as the next transformation darling to revolutionise compliance processes, the broad conclusion has been that it is not quite there yet.
The HKMA recently released a KPMG produced report, ultimately concluding that the infrastructure and service providers are available and willing to serve. Major barriers to broader Regtech adoption are cited as a lack of market size, mature solutions, and talent supply, but one of the highest barriers has just been a lack of awareness.
The report sets out 16 recommendations across 5 key areas to assist in this expedition, broadly including:
- Boosting awareness by establishing a Regtech knowledge hub, issuing practice guides and hosting targeted Regtech events;
- Promoting solution innovation by exploring financial incentives, hosting Regtech challenges, facilitating access to infrastructure and engaging in cross-border Regtech collaboration;
- Boosting regulator engagement by continuing to engage overseas regulators and communicating with the broader Regtech community;
- Developing a talent pool by creating a skills framework for Regtech adoption and formalising training by introducing or enhancing Regtech modules for relevant industry courses; and
- Sustaining adoption by expanding the Regtech ecosystem through institutional engagement, publishing a Regtech Adoption Index for corporate assessments and magnify the impact of collaboration initiatives.
The report concludes that there is nothing inherently wrong with the Hong Kong Regtech market or the HKMA’s approach to adoption (it congratulates both), rather the upshot is that the HKMA needs to do more of the same but louder.
Source: Gilbert + Tobin news