The newly formed RegTech Platform, initiated by Innovate Finance, the City of London Corporation, and Encompass Corporation, aims to propel the RegTech industry forward by addressing crucial challenges and enhancing the communication and effectiveness of RegTech solutions.
This collaborative effort is particularly timely, considering the increasing complexity and stringent requirements of regulatory frameworks, including Know Your Customer (KYC) and anti-money laundering (AML) standards.
As part of this initiative, a significant proposal known as the “RegTech Test” has been introduced. This test is designed to integrate the impacts of regulatory changes into the compliance technology infrastructures that financial institutions currently use. Moreover, it aims to showcase how advanced RegTech solutions can not only meet but exceed the objectives laid out in financial policies.
The formation of this platform and the introduction of the RegTech Test were timed to coincide with the UK FinTech Week, highlighting the strategic importance of this launch in the broader financial technology landscape. The platform not only seeks to provide practical insights and advocacy but also stresses the critical roles of policymakers, supervisors, and enforcers in the financial sector.
The RegTech Platform seeks to enhance the understanding and deployment of regulatory technology to improve compliance efficiency and cope with evolving global financial crime regulations. Dr. Henry Balani, Global Head of Industry & Regulatory Affairs at Encompass Corporation, emphasized the growing challenges of financial crime and the necessity for efficient regulatory frameworks that institutions can quickly adapt to. He highlighted the ongoing manual processes in compliance that hinder rapid adaptation and noted that the RegTech Test would assure regulators of the efficacy of new technological solutions.
This initiative not only aims to facilitate better compliance with regulatory demands but also to foster business growth and efficiency through technological innovation. The partnership intends to create a unified voice for RegTech providers and ensure that they have significant input in regulatory discussions, which is crucial for developing effective and implementable regulations.
Encompass Corporation Global Head of Industry & Regulatory Affairs Dr. Henry Balani said, “Financial crime remains a pressing global issue, which has only increased over the last few years, and, as a result, regulators have acted by developing new regulations. The challenge lies in developing effective regulations that financial institutions can implement, with the onus on ensuring they have the systems in place to quickly and efficiently respond to changing obligations – something that is particularly challenging when compliance processes are largely manual.”
“With the RegTech Test, regulators will feel confident their constituents utilise the latest RegTech solutions effectively, which will have a transformative impact for financial institutions, both in terms of compliance and ultimate business growth and efficiency. As a result, championing the industry has never been more important.”
“Moving forward, it is imperative that RegTech providers have a clear voice and, where regulations are concerned, a seat at the table. As a group, our aim is to improve alignment and collaboration between RegTech providers and regulators, to the benefit of all, including financial institutions.”
“We hope to bolster the ecosystem through awareness and education. By bringing together all stakeholders with common goals, we can continue to make progress in the fight against financial crime and accelerate the adoption of the technologies and technology-driven processes that have a significant role to play moving forward.”
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