The EBA has published an analysis of the current Regulatory Technology (RegTech) landscape in the EU.
The report provides insights into the following:
- a mapping and understanding of the existing RegTech solutions, identifying the status of adoption, financial institutions’ spending, the impact of COVID‐19 as well as trends and drivers;
- the overall benefits of the use of RegTech, either developed by financial institutions or provided by RegTech providers, as well as its perceived advantages of RegTech solutions over ‘traditional’ methods;
- the challenges faced by financial institutions when using RegTech solutions and RegTech providers, when offering their service, identifying the main barriers and risks related to the adoption and use of RegTech solutions; and
- a closer look at the benefits, challenges and supervisory risks associated with five key RegTech areas: AML/CFT, fraud prevention, prudential reporting, ICT security, and creditworthiness assessment.
The EBA intends to organise a public webinar in Q4 2021 to present and discuss the main findings of the report.