In the midst of the FinTech revolution, many solutions and innovations are being brought out into the finance industry. One in many of the tech innovation solutions is known as: RegTech, a subset of the FinTech nomination. A question therefore arises as to whether RegTech is feasible and if our current regulation and compliance infrastructure is able to transition effectively & efficiently.
Singapore is now being viewed as an up and coming fintech hub following in the footsteps of the United Kingdom. RegTech is an important ‘next-step’ to FinTech going forward. The proliferation of RegTech solutions may help in providing efficient risk identification and responses and even outperform the current regulatory framework.
Rightfully so, Singapore does not turn an oblivious eye on the potential of regulation technology. The Monetary Authority of Singapore (MAS) hosted Asia’s first regtech-focused event last year as part of the inaugural Singapore Fintech Festival. That’s not all, last June MAS set up a regulatory sandbox to provide startups and financial institutions a live environment to test out their innovations without disrupting banking systems.
With all of these considered, will Singapore be a RegTech leader in the future? It is possible. Though, additional steps need to be taken for RegTech. An interesting idea would be to question if existing regulations need to change or at least be adjusted so the banks have an incentive to integrate RegTech solutions to make the transitioning phase easier.
Author: Team FinTech Consortium