International Trends in Regtech Innovation

2017/11/1 上午 12:00:00

Fintech has swept the world, not only creating new transaction, business, and industrial models for financial services, but also challenging the supervisory models in effect for many years. Designing new regulations and rethinking the role of regulators, without restraining innovation, and creating an environment conducive for benign interaction, will all become key factors for the steady development of the industry. A balance must be struck between regulators, business, and Fintech. “Regtech” is a type of tool to help financial institutions comply with regulatory requirements and improve supervision efficiency, effectively resolving financial pain points.

This report draws several important conclusions. First, governments around the world have actively provided Fintech startups with experimental regulatory environments. The development of a country’s Fintech industry, the state of its policy and regulatory environment for staffing recruitment and attraction of capital, and the smoothness of its financing channels are all closely related, and greatly affect the construction of its Fintech ecosystem. Secondly, many Regtech startups have already appeared around the world. If they are able to cooperate with financial institutions, their technology will improve, helping reduce banks’ compliance risks. Third, a sound regulatory environment is needed to support Taiwan’s emerging Fintech industry. The passage of the Experimental Regulations on Fintech Development may focus attention on Taiwan’s Fintech development. Hopefully, the “sandbox” mechanism will be able to develop the industry. Increasing regulatory requirements will bring growth opportunities to Regtech startups. Fourth, most of the cases in this study are of Fintech startups – mainly because they have developed faster than banks, have provided Regtech to the financial industry, and have good reference value.