Britain’s financial regulator has called for the regulatory technology industry to press their own case for the greater adoption of ways to automate compliance and spot money laundering, rather than expecting it to do so.
According to Reuters, the report called on regulators to step up the use of regtech to make finance more competitive. Still, regulators said it was not their place to take the lead. Annual cost of compliance for Britain's top five banks could be cut by at least 0.05%, or a combined USD 720 million, by the greater use of regtech, according to a report by the City of London Corporation.
Regtech is part of Britain's wider fintech sector that is a central plank of the government's strategy to build a more globally competitive financial sector after the City of London was cut off from Europe by Brexit.
The use of regtech, however, was held back by long procurement cycles, slow decision making inside firms, constraints from existing technology and lack of funds, the report said.
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