HKMA Launches Global Challenge for Regtech Providers
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
Previous Article
FINMA Evaluates Recovery and Resolution Plans of Systemic EntitiesRelated Articles
BIS and Central Banks Experiment with GenAI to Assess Climate Risks
A recent report from the Bank for International Settlements (BIS) Innovation Hub details Project Gaia, a collaboration between the BIS Innovation Hub Eurosystem Center and certain central banks in Europe
Nearly 25% G-SIBs Commit to Adopting TNFD Nature-Related Disclosures
Nature-related risks are increasing in severity and frequency, affecting businesses, capital providers, financial systems, and economies.
Singapore to Mandate Climate Disclosures from FY2025
Singapore recently took a significant step toward turning climate ambition into action, with the introduction of mandatory climate-related disclosures for listed and large non-listed companies
SEC Finalizes Climate-Related Disclosures Rule
The U.S. Securities and Exchange Commission (SEC) has finalized the long-awaited rule that mandates climate-related disclosures for domestic and foreign publicly listed companies in the U.S.
EBA Proposes Standards Related to Standardized Credit Risk Approach
The European Banking Authority (EBA) has been taking significant steps toward implementing the Basel III framework and strengthening the regulatory framework for credit institutions in the EU
US Regulators Release Stress Test Scenarios for Banks
The U.S. regulators recently released baseline and severely adverse scenarios, along with other details, for stress testing the banks in 2024. The relevant U.S. banking regulators are the Federal Reserve Bank (FED), the Federal Deposit Insurance Corporation (FDIC), and the Office of the Comptroller of the Currency (OCC).
Asian Governments Aim for Interoperability in AI Governance Frameworks
The regulatory landscape for artificial intelligence (AI), including the generative kind, is evolving rapidly, with governments and regulators aiming to address the challenges and opportunities presented by this transformative technology.
EBA Proposes Operational Risk Standards Under Final Basel III Package
The European Union (EU) has been working on the final elements of Basel III standards, with endorsement of the Banking Package and the publication of the European Banking Authority (EBA) roadmap on Basel III implementation in December 2023.
EFRAG Proposes XBRL Taxonomy and Standard for Listed SMEs Under ESRS
The European Financial Reporting Advisory Group (EFRAG), which plays a crucial role in shaping corporate reporting standards in European Union (EU), is seeking comments, until May 21, 2024, on the Exposure Draft ESRS for listed SMEs.
ECB to Expand Climate Change Work in 2024-2025
Banking regulators worldwide are increasingly focusing on addressing, monitoring, and supervising the institutions' exposure to climate and environmental risks.