RegTech and SupTech initiatives across Asia - supporting regulatory compliance and supervision

One important area of innovation in finance is the application of technologies such as machine learning, cloud computing and data analytics for regulatory and compliance requirements and reporting by regulated institutions (RegTech), and applications of fintech used by authorities for regulatory, supervisory and oversight purposes (SupTech).

Regulated institutions and authorities may deploy a combination of RegTech and SupTech tools as part of their compliance and supervisory strategies respectively.  The creation and adoption of RegTech and SupTech tools can be traced to the need to support supervisory processes while ensuring compliance with the increased regulatory requirements that were implemented after the 2008 global financial crisis . 

Other key drivers include the emergence of new technologies and the potential for gains in efficiency and effectiveness of regulatory processes as well as the possibility for improved insights into risk and compliance developments.

In our latest publication we explore the use of RegTech and SupTech in Asia by both government and industries, as well as the considerations for future RegTech and SupTech strategies. We look at specific use cases and the  approaches being taken in Singapore, Hong Kong, Brunei, Malaysia, Philippines, Thailand, India,  Indonesia, Japan, Taiwan and South Korea as well as intergovernmental and initiatives.

Looking to the future, several key themes have emerged as areas which might benefit from further exploration and consideration by authorities as they develop their RegTech and SupTech strategies. These include the importance of senior management buy-in, early engagement with users of tools (eg supervisors) and collaborations both between authorities, but also with technology vendors and regulated institutions. The potential catalytic role of data standards and the importance of effective governance frameworks for the use of RegTech and SupTech have also been emphasised.