Hong Kong SFC to Launch 'Regtech' Project to Improve Financial Data Analysis

Hong Kong’s Securities and Futures Commission (SFC) is shortly due to launch a pilot Fintech Fintech Financial Technology (fintech) is defined as ay technology that is geared towards automating and enhancing the delivery and application of financial services. The origin of the term fintechs can be traced back to the 1990s where it was primarily used as a back-end system technology for renowned financial institutions. However, it has since grown outside the business sector with an increased focus upon consumer services.What Purpose Do Fintechs Serve?The main purpose of fintechs would be to suppl Financial Technology (fintech) is defined as ay technology that is geared towards automating and enhancing the delivery and application of financial services. The origin of the term fintechs can be traced back to the 1990s where it was primarily used as a back-end system technology for renowned financial institutions. However, it has since grown outside the business sector with an increased focus upon consumer services.What Purpose Do Fintechs Serve?The main purpose of fintechs would be to suppl Read this Term project as part of a wider plan to improve the way the watchdog monitors and detects systemic risk, according to sources quoted by Reuters today.

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The SFC will be joining forces with a sample group of 20 banks and an external technology firm in a bid to revamp the way it uses financial data.

Regtech

Fintech is a term used to describe the new wave of financial technology firms that are revolutionising the global financial services industry.

Regulators and banks are increasingly using new technologies, such as artificial intelligence or data Analytics Analytics Analytics may be defined as the detection, analysis, and relay of consequential patterns in data. Analytics also seeks to explain or accurately reflect the relationship between data and effective decision-making. In the trading space, analytics are applied in a predictive manner in an attempt to forecast the price more accurately. This predictive model of analytics generally involves the analysis of historical price patterns that are used in an attempt to determine certain price outcomes. Analy Analytics may be defined as the detection, analysis, and relay of consequential patterns in data. Analytics also seeks to explain or accurately reflect the relationship between data and effective decision-making. In the trading space, analytics are applied in a predictive manner in an attempt to forecast the price more accurately. This predictive model of analytics generally involves the analysis of historical price patterns that are used in an attempt to determine certain price outcomes. Analy Read this Term, to address new regulations and better manage risk - an emerging phenomenon that has been dubbed 'regtech'.

The SFC is seeking to improve on the way it analyses the data it gathers from financial firms and the market to spot risks such as product mis-selling or fraud.

Huge Volumes of Data

Regulators globally are increasing their efforts to identify systemic risks, but many are struggling to effectively analyse the growing volume of data they are gathering.

The SFC has reportedly been experiencing problems with different data sources, different formats and different time-intervals, spending a lot of time capturing and aggregating data when it would be more beneficial to allocate the time deriving insight from the data instead.

According to Reuters, Britain’s Financial Conduct Authority (FCA) has also been promoting the development of 'regtech' to help address a range of regulatory challenges, including data management as well as combating money laundering and cyber risk.