Hong Kong’s Securities and Futures Fee (SFC) is shortly as a consequence of launch a pilot fintech undertaking as a part of a wider plan to enhance the best way the watchdog screens and detects systemic threat, in accordance with sources quoted by Reuters immediately.
The SFC might be becoming a member of forces with a pattern group of 20 banks and an exterior know-how agency in a bid to revamp the best way it makes use of monetary knowledge.
Fintech is a time period used to explain the brand new wave of economic know-how corporations which can be revolutionising the worldwide monetary companies trade.
Regulators and banks are more and more utilizing new applied sciences, similar to synthetic intelligence or knowledge analytics, to handle new rules and higher handle threat – an rising phenomenon that has been dubbed ‘regtech’.
The SFC is searching for to enhance on the best way it analyses the information it gathers from monetary corporations and the market to identify dangers similar to product mis-selling or fraud.
Large Volumes of Information
Regulators globally are rising their efforts to determine systemic dangers, however many are struggling to successfully analyse the rising quantity of knowledge they’re gathering.
The SFC has reportedly been experiencing issues with completely different knowledge sources, completely different codecs and completely different time-intervals, spending loads of time capturing and aggregating knowledge when it might be extra useful to allocate the time deriving perception from the information as a substitute.
In response to Reuters, Britain’s Monetary Conduct Authority (FCA) has additionally been selling the event of ‘regtech’ to assist tackle a spread of regulatory challenges, together with knowledge administration in addition to combating cash laundering and cyber threat.