资源描述
FINTECH, REGTECH AND THE ROLE OF COMPLIANCE 2021 Thomson Reuters Regulatory Intelligence Navigate the global regulatory environment with confidence Thomson Reuters Regulatory Intelligence delivers a focused view of the global regulatory environment, empowering compliance professionals to make well-informed decisions to manage regulatory risk using the most comprehensive and trusted intelligence available. This solution cuts through the complexity and sheer volume of content within the regulatory environment by providing clarity on what is most important for your organization, in a cost-effective way. A full and up-to-date view of the regulatory environment, from the broadest global industry perspective down to the most granular detail. Coverage of over 1,200 regulatory bodies and more than 4,000 collections of regulatory and legislative materials from across the world more than anyone else. Richest source of regulatory content: news, analysis, rulebooks, regulatory events and practical guidance. Actionable and practical information, from board level reporting to operational compliance management. Learn more at 2020 Thomson Reuters TR1329889/11-20 3 Contents EXECUTIVE SUMMARY 04 INTRODUCTION 06 CURRENT SITUATION 08 BENEFITS 12 CHALLENGES 15 ADDRESSING THE CHALLENGES 23 FINTECH/REGTECH IN THE FUTURE 28 CLOSING THOUGHTS 33 All references to this report must be fully cited, credited to Thomson Reuters Regulatory Intelligence. 4 Executive summary 2020 has been a year of a digital transformation and acceleration to meet the challenges of the COVID-19 pandemic. By necessity and by design firms have implemented the roll-out of technology, often at speed, to enable business activities to continue as countries went into lockdown. The applications that are covered by the term fintech are fast becoming part of financial services firms identity. In a marketplace that is still maturing, the question is whether corporate governance and the culture of financial services firms have kept up to pace with this new tech. Thomson Reuters Regulatory Intelligences (TRRI) fifth annual survey on fintech, regtech and the role of compliance explores these issues. This years survey results represent the views and experiences of more than 400 compliance and risk practitioners. The survey found the adoption and implementation of technology has taken a huge step forward during the pandemic, despite the continuing budget challenges that firms face. Sector growth is expected to accelerate in the coming months and years, despite a slowdown in new start- ups during 2020 due to the pandemic. Firms, and their customers, are realizing value from their use of a variety of fintech solutions. Firms must be careful to deploy solutions on solid foundations and this means getting the corporate governance right. A quarter of respondents reported that boards and risk and compliance functions needed to be more involved in fintech solutions; an absence of appropriate skill sets may be one reason for this lack of involvement. More G-SIFI firms this year said they were “neutral”, as opposed to “extremely or mostly positive”, when asked their opinion of fintech solutions. The survey did not explore the underlying reasons for this shift but it could be that the pandemic has restricted firms investment in fintech and more firms are having to make do with existing applications rather than buying new, more advanced applications that would meet their needs more closely. Regtech applications continued to provide popular, embedded solution for firms in areas such as compliance monitoring, financial crime, AML/CTF, sanctions and regulatory reporting. Budgets were predicted to increase, with a mix of in-house and external solutions the most frequent option selected by respondents. Fintech presents extensive opportunities for firms in future. The presence of bigtech and the potential of artificial intelligence (AI) will enable firms to increase customer- focussed initiatives such as financial inclusion. To be able to exploit these areas firms need to overcome a number of challenges: budgetary limitations, weaknesses in corporate skill sets, the limitations of existing IT infrastructure and the developing regulatory picture. They must also ensure they have an appropriate corporate governance framework capable of managing the deployment of fintech systems. The main facts from the survey include: Growth of the marketplace 70% of firms reported the virus had increased their reliance on technological solutions, rising to 81% in the global systemically important financial services institutions (G-SIFIs) population. Fintech solutions were used across a wide and diverse range of activities, from payments, banking software, crypto assets and stablecoin, insurtech and regtech. The greatest benefits reported were an improvement in efficiency, greater transparency in decision-making and cost reductions. 21% of G-SIFIs are now neutral on fintech innovation and digital disruption, up from 6% last year. Developing corporate governance and culture 67% of boards were considered to have enough involvement, 68% of risk and compliance functions are seen to be either fully engaged or having some involvement. 31% of firms said that they had yet to invest in skill sets at the board level but knew it was needed, compared with just 7% of G-SIFIs. 22% of G-SIFIs had invested and/or appointed specialist skills to the board (12% in the wider population) and a further 56% (42% in the wider population) reported that they had invested in board-level skills to some extent. 15% of firms have invested in specialist skills for the risk and compliance function; 24% have not yet done so but know it is needed. Challenges to change and development The greatest challenges firms expect to face in the next 12 months were budget limitations followed by digital services and payments and keeping up with regulatory change. The main reason firms had not deployed fintech or regtech solutions was a lack of investment or budget, cited by a third of firms. Other reasons included a lack of in-house skills, information security and data protection concerns and poor IT infrastructure. Fintech, regtech and the role of compliance in 2021 5 9% of firms reported a strategic decision not to use fintech or regtech solutions. More than half (52%) of firms are mostly confident their IT infrastructure is, or will be, able to support fintech solutions. Regtech 16% of firms reported they had implemented regtech solutions with a further 34% reporting that regtech solutions were affecting the management of compliance. For G-SIFIs this almost halved to 15% (27% last year). The greatest value of regtech was cited as its importance to operational management at 38%, which doubled in G-SIFIs to 73%. There has been a shift from firms which employ in- house solutions, falling to 6% in 2020 from 17% in 2019. 12% of firms reported that all regtech solutions were developed externally. Although this is an increase on last year (6%) this figure has more than halved since 2017 (26%). In parallel, no G-SIFIs reported solely developing regtech solutions externally; instead, 88% reported a combination of internal and external solutions dependent on the challenge to be addressed. 32% of firms said their budget for regtech solutions would grow in the next 12 months while 25% said the budget will stay the same (42% for G-SIFIs). 27% of firms lack a budget for regtech solutions compared with just 4% of G-SIFIs. 6 INTRODUCTION Respondents to the fifth fintech, regtech and the role of compliance survey were drawn from all sectors of financial services, from G-SIFIs to technology start-ups. As G-SIFIs are often seen as a leading indicator they were asked to identify themselves to enable comparison between themselves and other, smaller firms. The report provides an unparalleled insight into how financial services firms risk and compliance functions have responded to digital transformation and how they are using technology to respond to the challenges of the pandemic. The report covers the use of fintech (including regtech, insurtech and suptech) in 2020/1 and the status of the marketplace. It looks at the benefits of introducing fintech into firms and the challenges this poses the board and risk and compliance functions. It looks at how firms are addressing these challenges and how risk and compliance functions can assist firms with this. Finally, the report looks to the future and explores some of the ways fintech will be developed. Where permission was received, quotes (some anonymized) from respondents have been included where they highlight specific issues. The results of this years survey are likely to be unique given the backdrop of the pandemic, but for all that there is distinct consistency of approach. Firms have focused on being able to continue to deliver the required good customer outcomes in the face of a challenging and uncertain business environment. Technology has come to the rescue, enabling firms to adapt, at speed, and continue at least a semblance of business as usual. TRRIs survey reports are intended to help financial services firms with planning, resourcing and direction and allow them to benchmark whether their approach, skills, strategy and expectations are in line with those of the wider industry. As with previous reports, regional and G-SIFI results are split out where they highlight a particular trend. Susannah and Mike “We hope that compliance can become more streamlined, efficient and customer-centric rather than a red pen on the page.” Sean Hughes, commissioner at the Australian Securities and Investments Commission, August 2020. “Thanks to digital solutions, the banking industry was able to maintain its operational functions during the lockdown. But it is becoming more and more apparent that digitalisation, having been very abrupt due to the crisis, is being accompanied by a number of challenges for example, with regard to cyber security. Banks need resilient IT infrastructures; they need to train their staff and develop strategies to counter IT failures.” Article entitled “Hackers are stepping up their pace” by Raimund Rseler, chief executive director of BaFins Baking Supervision, September 2020. 7 Fintech, regtech and the role of compliance in 2021 DEFINITIONS The Financial Stability Board (FSB) defines fintech as “technologically enabled innovation in financial services that could result in new business models, applications, processes or products with an associated material effect on financial markets and institutions and the provision of financial services.” The UKs Financial Conduct Authority (FCA) defines regtech as “a subset of fintech that focuses on technologies that may facilitate the delivery of regulatory requirements more efficiently and effectively than existing capabilities.” The International Association of Insurance Supervisors defines insurtech as “the variety of emerging technologies and innovative business models that have the potential to transform the insurance business.” The Bank for International Settlements defines supervisory technology (suptech) as “the use of innovative technology by supervisory agencies to support supervision”. It helps supervisory agencies to digitise reporting and regulatory processes, resulting in more efficient and proactive monitoring of risk and compliance at financial institutions. The FSB defines bigtech firms as “large technology companies with extensive established customer networks”. Some bigtech firms use their platforms to facilitate the provision of financial services. Those that do so can be seen as a subset of fintech firms a broader class of technology firms (many of which are smaller than bigtech firms) that offer financial services. 8 CURRENT SITUATION Financial innovation and technological solutions have become increasingly popular in recent years. The pandemic has led to suffering in many areas of society, financial services included, but the fintech market continues to grow, and the pace of development is expected to increase as more of the issues exposed by the pandemic seek technological solutions. This is equally true elsewhere with all areas of technology penetration or adoption booming as a result of the pandemic. “Depending on banks ability to adapt and adjust their business models, fintech could be viewed as a competitive threat, or as an opportunity to leverage technologies to promote financial innovations, enhance customer experiences, facilitate financial inclusion and achieve greater cost efficiencies.” Edmond Lau, senior executive director of the Hong Kong Monetary Authority, May 2020. 35 30 25 20 15 10 5 0 US e-commerce penetration, % Source: Bank of America; Forrester Analytics; ShawSpring Research; US Department of Commerce, McKinsey analysis 2009 2011 2013 2015 2017 2019 Q1 2020 10 years growth in 3 months The long-term outlook for the fintech sector remains highly favourable for investors despite the impact of the pandemic, and sector growth is expected to accelerate in the next couple of years. In 2020, however, the uncertainty created by the pandemic has reduced the number of fintech deals in the UK: in the second quarter of 2020 there were just eight, compared with 19 in the same period of 2019. “The disruption caused by COVID-19 has demonstrated the value of technology in overcoming some of the challenges. Digital innovation may help address issues from the longer-term decline in the use of cash, increase the availability of mass market financial advice, and reduce the need for manual processes in businesses. We are committed to supporting innovation that works for all, including vulnerable customers and smaller firms. We know that our regulatory framework needs to keep pace focussing on outcomes, and being forward looking.” Nausicaa Delfas, executive director of international, and member of the executive committee at the UK Financial Conduct Authority, July 2020. 9 Fintech, regtech and the role of compliance in 2021 Use of fintech This years TRRI survey asked participants for their views on the fintech and regtech markets and split results between G-SIFIs and other firms. For G-SIFIs, while the overall view of fintech innovation and digital disruption has remained largely the same year-on-year, there is a shift from “extremely positive” to a more “neutral” position (21% neutral in 2020 compared with 6% neutral in 2019). In 2020, only 12% of G-SIFIs viewed fintech innovation and digital disruption as extremely positive (29% in 2019). 0% 10% 20% 30% 40% 50% 60% 70% 80% Overall, extremely negativeOn balance, negativeNeutral Mostly positive Overall, extremely positive 28% g132 G-SIFIs 2017 g132 G-SIFIs 2018 g132 G-SIFIs 2019 g132 G-SIFIs 2020 G-SIFIs: What is your view of fintech (including insurtech) innovation and digital disruption? Source: Thomson Reuters Regulatory Intelligence: Fintech, Regtech and the Role of Compliance in 2021, by Susan
展开阅读全文