Prominent regulators around the globe agree data-driven regulation and compliance is key to a healthy financial services industry. The Financial Conduct Authority (FSA), the Australian Securities and Investment Commission (ASIC), the Monetary Authority of Singapore (MAS), and the BVI’s Financial Services Commission are all championing, and in many cases, investing in new data technologies.
Automating the collection, analyzing and reporting of data offers regulators and financial firms alike not only transparency into compliance and risk management but also cost savings and greater efficiencies. UK Chancellor Philip Hammond noted in a speech to the second International Fintech Conference in London in March 2019 that the FCA and Bank of England are moving towards automating regulatory compliance.
Core data science and technologies likely to be embraced by regulators and firms worldwide in the coming years include:
- Data facilities – publicly accessible online repositories of regulatory data;
- Internet of things (IoT) – inter-networking of ‘smart’ physical devices that collect and exchange data;
- Chatbots – systems for interacting with regulated companies, registrants and the general public;
- Big data - process of examining very large data sets to uncover hidden patterns and unknown correlations;
- Artificial intelligence (AI) – systems able to perform tasks normally requiring human intelligence;
- Behavioral/predictive analytics – analysis of large and varied data sets to uncover hidden patterns, unknown correlations, and customer preferences; and
- Blockchain technologies - technology underpinning digital currency, that secures, validates and processes transactional data.
To learn more, consider reading a recent ISCA article on this subject: “Data-driven regulation and compliance is the key to a successful future financial services industry.”
Or see how MCO advises CCO to begin moving their compliance programs to more modern environments.