Considering the growing rise of Regtech, the Hong Kong Monetary Authority (HKMA) recently requested authorized firms to encourage the adoption of Regtech in the Hong Kong banking sector.
The letter distributed by HKMA is focused primarily on encouraging financial firms to leverage Regtech for maximizing the effectiveness of risk management and regulatory compliance. With the intent to expand the Regtech ecosystem in Hong Kong, the HKMA, in coordination with KPMG advisory, has been working towards it consistently. Right from organizing events to scheduling interviews, everything was a significant part of this promotional activity.
Based on the discussions with selected AIs and technology firms, HKMA launched a Regtech survey on July 27’2020. The survey was designed to gather insights from various sources around Regtech development.
Further, a whitepaper is anticipated. This whitepaper on Regtech will be focusing on the results acquired from surveys and interviews. It will also have an analysis of the current Regtech ecosystem, challenges, and a roadmap for promoting the growth of Regtech.
The adoption of Regtech in Hong Kong is expected to rise since financial firms have started embracing it. Earlier, HKMA came up with regulatory sandboxes to test ideas that are yet to be verified without the real need for full compliance.
This clearly depicts that Hong Kong is now wholly prepared to tap into Regtech opportunities. In addition to it, the Securities and Future Commission has been exploring the potential of this technology that goes way ahead than data collection, tabulation, and basic analytics.
By comprehending the opportunities that Regtech development has to offer, Hong Kong will be able to stand out as an international financial hub and uncover the potential of the younger generation who are actively looking for diverse career options.
