HKMA launched the Global Regtech Challenge, which is a competition designed to raise awareness of the potential of regtech adoption in the banking sector in Hong Kong. The contest is one of the key highlights in the two-year roadmap of HKMA to promote regtech adoption in Hong Kong. HKMA is inviting regtech providers from around the world to participate and showcase how their solutions may be applied to the local market to help solve common risk management and regulatory compliance pain points experienced by banks. The deadline for submission is April 16, 2021.
Mr. Arthur Yuen, Deputy Chief Executive of HKMA said, with this “we want to create lasting partnerships between banks and regtech firms in further encouraging a thriving regtech ecosystem in Hong Kong.” As part of the research conducted during the development of the November 2020 whitepaper on transforming risk management and compliance by harnessing the power of regtech, a set of problem statements reflecting challenges faced by the industry were identified with the most potential to benefit from further regtech adoption. The identified challenges span across the following four regtech application areas:
- Governance, Risk and Compliance. How might technology be used to optimize regulatory compliance of all internal and external obligations?
- Risk management. How might technology be used to enhance the delivery of stress testing requirements driven by needs across different risk, compliance, and business unit teams?
- Customer Data Privacy. How might technology be used to help banks protect customer data and privacy, especially in addressing increasing concerns about cyber risks and related regulatory compliance?
- Conduct and Customer Protection. How might technology be used to support risk and compliance teams with their product due diligence and risk-rating assessments?
As mentioned in the whitepaper, banking industry considers these four themes to be areas with relatively less mature local solutions in the market but with serious potential for further regtech development and adoption. As identified in the White Paper, the four themes are considered by the banking industry as areas currently with relatively less mature local solutions in the market but have serious potential for further regtech development and adoption. Selected finalists will get an opportunity to participate in a three-week Contextualization Program scheduled for May 2021. The Contextualization Program consists of a series of virtual activities to help the selected finalists gain further understanding of, and insight into, the Hong Kong market, to ensure their solutions are relevant to the local market. The winning solutions will be selected by the panel during a virtual pitching event that will be hosted in early June 2021 and will be announced during the upcoming regtech event “Unlocking the Power of Regtech” to be held tentatively in June 2021.
Keywords: Asia Pacific, Hong Kong, Banking, Regtech, Compliance Risk, Governance, Big Data, Regtech Challenge, HKMA