The European Banking Authority (EBA) launched an industry consultation to identify the main barriers and risks of deploying RegTech and potential ways to support its uptake across the European Union.
The EBA is inviting all relevant stakeholders, such as financial institutions and information and communication technology (ICT)) third party providers, to share their views and experience on the use of RegTech solutions, on a best effort basis.
The EBA said that feedback from financial institutions and ICT third party providers is essential to better gauge the extent and the impact of RegTech for regulatory, compliance and reporting requirements by regulated institutions.
The survey will focus on mapping and understanding the existing solutions as well as assessing the key challenges of the offerings.
The regulatory agency has prepared two separate questionnaires – one for the financial institutions and the other for ICT third party providers.
Both are composed of a general part, aimed at collecting an aggregate information on all types of RegTech solutions in use, and a more detailed part, which will have a closer look at individual offerings in four specific areas. These include anti money-laundering /combating the financing of terrorism (AML/CFT), creditworthiness assessment and compliance with security requirements, and standards (information security, cybersecurity, payment services). Last not least is supervisory reporting
After the review of the responses, the EBA may further investigate areas of RegTech via follow-up interviews with financial institutions and ICT third party providers.
The EBA expects to report to be published in the first half of 2021.
Since the global financial crisis, RegTech has disrupted the regulatory landscape by providing a host of technologically advanced solutions to meet the ever-increasing demands of compliance within the financial industry. They incorporate a wide range of digital tools from machine learning to natural language processing, blockchain and artificial intelligence.