Event recap: RegTech Forum 2023

Last week, Suade Labs hosted the RegTech Forum, an event that brought together industry leaders, regulators, and technology experts to discuss the latest trends and innovations in regulatory technology. This event, held at the historic Guildhall in partnership with the City of London Corporation , offered valuable insights into the evolving landscape of finance, technology, and regulation.

Keynote: Sir William Russell

Alderman William Russell of the City of London Corporation delivered a compelling keynote address. He highlighted the UK's dominant position in the fintech sector, with impressive contributions to the economy. Russell emphasised the evolution of RegTech into a vital sector, offering efficient and cost-effective solutions to regulatory challenges.

The Evolution of RegTech

One session titled "The Evolution of RegTech" explored current trends in RegTech adoption and its role in reshaping compliance. The consensus was clear: technology is indispensable in ensuring efficiency and adherence to both old and new regulatory challenges.

“Banks need to accept new advancements within technology such as AI, front runners in the sector must take the lead on this”.

Global Data Standardisation

The importance of global data standardisation was a recurring theme. Speakers stressed the need for granular, standardised data to avoid the mishandling of financial data, as seen in the 2008 crisis. A proactive approach to establishing standards on a global scale was encouraged, moving away from isolated national approaches.

“Institutions want to know from the regulator what they should do to stay in business, and what they need to spend money on. They want simplicity”.

Basel 3.1 Regulations and Their Implications

The discussion delved into the implications of Basel 3.1 regulations on internationally active banks. These regulations require substantial capital reserves and rigorous risk management protocols. The "output floor" from the Basel III reforms, aimed at ensuring sufficient capital reserves, was also explored.

Insights from Bill Coen

Bill Coen, with his extensive experience in the Basel Committee, shared valuable insights. He emphasised the broader scope of the Basel Committee and highlighted the importance of regulatory sandboxes and collaboration for success.

Challenges for Smaller Financial Institutions

Smaller financial institutions face unique challenges in the context of regulatory transformations. The discussion underlined the need for a tailored regulatory framework that recognises the specific difficulties faced by smaller entities.

The Potential of Open-Source Data Standards

The final discussion focused on open-source data standards in financial regulation. The open-source approach was lauded for its inclusivity, collaboration, knowledge exchange, and continuous refinement. The synergy between open-source tools and collaborative ecosystems was identified as a way to accelerate the evolution and acceptance of data standardisation methodologies.

That's a wrap (until next year!)

The Suade Labs RegTech Forum provided valuable insights into the rapidly changing landscape of finance and regulation. It underscored the importance of technology in meeting regulatory challenges efficiently and effectively. We look forward to future events that continue to explore and shape the world of regulatory technology.

Coming up...

We will explore in more detail the Strong and Simple panel during an upcoming webinar dedicated to the Strong and Simple regulatory framework.

In my view, the biggest challenge is likely to be setting and maintaining the cut-off points, and this has been the focus of a lot of virtual ink in the consultations to date”. - From our Strong & Simple panel?

This webinar serves as a sequel to our panel discussion at the recent forum. It is intended for individuals engaged in prudential risk and regulatory reporting.

Register now!

Our distinguished speakers for this session will include the Head of Risk and Regulatory Reporting at Suade Labs , James Bowpitt and the Head of Prudential Regulation from the Building Societies Association , Ruth Doubleday .