The European Banking Authority (EBA) has launched a RegTech Industry Survey and invites relevant stakeholders to share their views, opinions and experience on the use of RegTech solutions.
The RegTech survey has been launched with the aim of mapping and understanding RegTech solutions within the market and to then share that knowledge across both industry and the relevant authorities. In particular, it aims to look at the barriers that prevent financial institutions from investing and implementing RegTech solutions and whether there are potential initiatives that could support or encourage its uptake.
For the purpose of the survey, the EBA has defined RegTech as the following:
“RegTech means any range of applications of technology-enabled innovation for regulatory, compliance and reporting requirements implemented by a regulated institution (with or without the assistance of ICT third-party providers).”
The survey has been split into two questionnaires, one for financial institutions and one for ICT third party providers. Topics covered include:
- Barriers to the adoption of RegTech and possible initiatives that could support its uptake
- Budget for RegTech and spending practices in this area
- Challenges of using RegTech
- Adoption and implementation times
- How RegTech is being used as a solution within the specific areas of AML and transaction monitoring, creditworthiness assessments, compliance with security requirements (including cyber) and supervisory reporting.
The last 10 years has seen a dramatic uptick in the use of RegTech across financial services, however, there remains a lack of research and understanding from regulatory agencies. While financial institutions and RegTech providers have been keen to adopt and explore RegTech, regulators have approached at a slower pace. CUBE is pleased to see that the European Banking Authority is allocating resources towards finding out more about RegTech – especially that it is keen to break down barriers to adoption.
While many financial institutions have implemented smart RegTech, such as CUBE, there remain a handful that are trepidatious or who continue to use outdated or legacy platforms. Often, this can lead to ineffective, inconsistent or inefficient compliance practices. CUBE eagerly awaits the EBA’s findings on the barriers to adoption and any possible initiatives that could be implemented to overcome this. The consultation, which closes on 30 September 2020, though the EBA has not yet given any indication of when the results can be expected.