RegTech, AI, and the evolving landscape at the London RegTech Forum

This panel discussion, "RegTech, AI, and the evolving landscape," explored the crucial intersection of regulation, data, and artificial intelligence in shaping the future of finance.

Key takeaways:

Regulation: no longer optional

• The panellists agreed that regulation is now a fundamental driver of transformation in the financial industry, pushing for higher standards, increased transparency, and ultimately benefiting both institutions and consumers.

RegTech: a journey still unfolding

• While acknowledging the significant progress made since the 2008 financial crisis, the panel recognised that RegTech is still in its early stages. Technology has been instrumental in advancing risk management and automation, but challenges remain in areas like data standardisation and consistency.

Data: the foundation for progress

• High-quality, transparent data is essential for effective RegTech solutions. The panel highlighted the shift from traditional paper-based reporting to scalable digital solutions, emphasising the need for continued innovation in this area.

AI: potential and practicalities

• AI offers significant opportunities to enhance productivity and streamline processes like KYC. However, its current applications are largely passive. To unlock AI's full potential, institutions need to develop ethical use policies and ensure that regulatory data is robust, balanced, and practical.

Striking a balance

• The panel stressed the importance of balancing innovation with practicality in RegTech adoption. Solutions should not only drive technological advancement but also address real-world concerns like risk reduction and improved customer service.