ING and CommonWealth Bank of Australia (CBA) have completed a RegTech pilot, which aims to simplify the processing of regulatory information.
Using the Markets in Financial Instruments Directive II (MiFID II) as a test case, the project worked with FinTech company Ascent Technologies and law firm Pinsent Masons.
It used natural language processing (NLP) and AI to interpret and convert 1.5 million paragraphs of regulation into a series of bitesize, actionable tasks appropriate for the banks.
Ascent’s technology enabled the banks ‘to quickly identify items’ in the regulation that could be reviewed and acted on, thus saving hundreds of hours of manual processing, according to a statement from ING.
Supun King-Jayawardana, head of London Innovation Lab, Commonwealth Bank of Australia (CBA), said, “This pilot provides all participants the opportunity to test some of the latest applications against complex industry regulation.
“When RegTech meets financial services, we create opportunities for banks, start-ups and regulators to collaborate and solve industry-wide challenges. By working together, we can share best practice in due diligence, experimentation costs, business knowledge and resources – ultimately driving great outcomes for all parties.”
The Financial Conduct Authority (FCA) also played a key role in the pilot, participating as an observer of the project. Through the process, FCA gained a greater understanding of the potential applications of RegTech, Natural Language Processing (NLP) and Artificial Intelligence (AI), and how these technologies can help organisations simplify and meet their compliance obligations.
Earlier this month, the FCA called for views on how technology can make it easier for firms to meet their regulatory reporting requirements. The body launched a RegTech consultation on how technology can improve and facilitate regulatory compliance, just months after it started running ‘Techsprints’.
Brian Clark, CEO & co-founder at Ascent Technologies, said, “This pilot demonstrates the power of RegTech, and we’re pleased that our solutions proved effective at automating and enhancing MiFID II compliance processes. We were proud to work with ING, CBA, FCA and Pinsent Masons on this project and look forward to continued collaboration.”
Copyright © 2018 RegTech Analyst
Copyright © 2018 RegTech Analyst
