Regulatory Technology (RegTech)

RegTech is the use of technology to enhance risk management and regulatory compliance in financial institutions.

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"Upholding values, attitudes and behaviours that protect the interests of our customers is crucial for continued trust and confidence in Singapore’s banks."

Mrs Ong-Ang Ai Boon, Director, The Association of Banks in Singapore
New Industry Steering Group to Elevate Culture and Conduct Standards for Banking Industry

Use Cases of RegTech

Anti-Money Laundering (AML) and Countering Financing of Terrorism (CFT)

High risk AML/CFT cases can be used to train machine learning algorithms to identify potential future cases.

Detection of Suspicious Activities

Cognitive computing and behavioural algorithms can be used to detect suspicious activities and possible misconduct.

 

MAS Initiatives

Guidelines on Outsourcing

The MAS Guidelines on Outsourcing provide guidance on sound practices on risk management of outsourcing arrangements, including cloud.

Technology Risk Management Guidelines

The MAS Technology Risk Management Guidelines set out risk management principles and best practice standards to guide financial institutions in establishing robust risk management framework as well as operating processes to manage these risks.

Machine Learning and Natural Language Processing to Optimise Screening

With support from the MAS Financial Sector Technology & Innovation grant scheme, Standard Chartered partnered with Silent Eight to develop a “Screening Optimisation” solution that applies machine learning and natural language processing techniques to replicate how a human analyst would do name screening.

Full Case Management Tool to Manage End-to-end Customer Onboarding Process

Cynopsis Solutions, one of the finalists of 2018 MAS FinTech Awards, has developed Artemis, a simple, cost-effective one-stop automation of complex regulatory requirements on KYC/AML/CTF.

RegTech 101

Positioning Regulation for Technological Innovation

Technology is transforming financial services and increasing the need for novel approaches in regulation that will promote the safe and responsible application of these technologies without stifling innovation.

Enhancing surveillance and compliance with RegTech

An increasing number of regulators and RegTechs are leveraging on technology to enhance the efficiency and effectiveness of surveillance and to boost compliance.

Risks in RegTech

Although RegTech provides opportunities in reducing risks, RegTech service providers must be cautious about potential technology risks of their solutions e.g. cyber criminals stealing customer information.

Benefits of RegTech


Sharpen Surveillance and Understanding of Risks

RegTech can leverage on data analytics to sharpen the surveillance and understanding of different risks, and to support more effective decision-making.


Enhanced Cybersecurity

RegTech can be used to strengthen cyber security across the financial industry to make it safer to use new technologies and instil confidence in consumers.