汤森路透-2021金融科技、监管科技合规性发展（英文）-2021.3-36页_5mb

Summary of "FINTECH, REGTECH AND THE ROLE OF COMPLIANCE 2021"

Core Content

This report by Thomson Reuters Regulatory Intelligence (TRRI) provides an in-depth analysis of the role of fintech and regtech in the financial services industry, particularly in the context of the pandemic. It highlights how firms have adapted to digital transformation and the challenges they face in integrating these technologies into their operations. The survey results reflect the views of over 400 compliance and risk professionals across the financial services sector.

Main Viewpoints

• Digital Transformation Accelerated by Pandemic: The pandemic has significantly increased reliance on fintech and regtech solutions, with 70% of firms and 81% of G-SIFIs reporting greater use of technology.
• Fintech Adoption and Perception: Fintech is increasingly part of financial services firms' identity, but there is a shift in perception, with G-SIFIs becoming more neutral (21%) rather than extremely positive (12% in 2020).
• Regtech as a Key Tool: Regtech is widely used for compliance monitoring, AML/CTF, sanctions, and regulatory reporting. It is seen as important for operational management (38%) and strategic decision-making (73% for G-SIFIs).
• Corporate Governance and Culture: There is a growing recognition of the need for better corporate governance and skill development to support fintech and regtech initiatives. Boards and compliance functions are increasingly involved in these areas.
• Challenges to Implementation: Budget limitations, lack of in-house skills, and outdated IT infrastructure are the primary challenges. However, 52% of firms are confident their IT can support fintech.
• Future Outlook: Fintech and regtech are expected to grow, with the potential to enhance financial inclusion, customer experience, and operational efficiency. The role of bigtech and AI is anticipated to be significant in this evolution.

Key Information

Growth of the Marketplace

• 70% of firms increased reliance on technological solutions due to the pandemic.
• Fintech solutions are used in a wide range of areas, including payments, banking software, crypto assets, and insurtech.
• The regtech market has seen a decline in in-house solutions, with a shift toward mixed internal and external approaches.
• 21% of G-SIFIs are now neutral on fintech, up from 6% in 2019.

Corporate Governance and Culture

• 67% of boards are considered to have sufficient involvement in fintech.
• 68% of risk and compliance functions are either fully engaged or have some involvement.
• 31% of firms have not yet invested in board-level fintech skills, but recognize the need.
• 15% of firms have invested in risk and compliance skills; 24% have not yet done so.

Challenges to Change and Development

• The top challenges for firms include budget limitations, regulatory changes, and the need for resilient IT infrastructure.
• 33% of firms cited lack of investment or budget as the main reason for not deploying fintech or regtech.
• 9% of firms made a strategic decision not to use fintech or regtech.
• 56% of firms use a mix of internal and external regtech solutions, compared to 6% using only in-house solutions.

Regtech

• 16% of firms have implemented regtech, with 34% reporting that it affects compliance management.
• For G-SIFIs, the percentage of firms implementing regtech dropped to 15% from 27% in 2019.
• 73% of G-SIFIs view regtech as important for operational management, while 38% of all firms share this view.
• 32% of firms expect regtech budgets to grow in the next 12 months, while 25% expect them to stay the same (42% for G-SIFIs).
• 27% of firms lack a regtech budget, compared to just 4% of G-SIFIs.

Fintech and Its Benefits

• The top three benefits expected from fintech in the next 12 months are improved efficiency, greater transparency in decision-making, and cost reductions.
• Fintech solutions are being used to enhance customer experiences and automate manual processes, especially in the context of remote working.

Future of Fintech and Regtech

• The role of bigtech and AI is expected to expand, offering opportunities for financial inclusion and innovation.
• Firms need to develop appropriate corporate governance frameworks to manage fintech deployment effectively.
• The report emphasizes the importance of balancing innovation with regulatory compliance and the need for continuous skill development and investment.

Conclusion

The report underscores the transformative impact of fintech and regtech on the financial services industry, driven by the pandemic. While these technologies offer substantial benefits, they also present challenges that require strategic investment, skilled personnel, and robust governance frameworks. The future of fintech and regtech is promising, with a focus on efficiency, transparency, and customer-centric approaches.