RegTech and SupTech
RegTech (regulatory technology) and SupTech (supervisory technology) are more than just buzzwords. In fact, they hold enormous potential for innovative regulatory and supervisory solutions in the digital age.
In the highly regulated financial sector, banks and other service providers are continuously confronted with increasing regulatory requirements, which entail costs for risk management, compliance and supervision. Cash handling and anti-money laundering (AML) regulations as well as foreign customers and tax compliance account for a large share of these costs. Putting regtech and suptech to use nationwide will improve supervision and compliance while also reducing costs significantly.
Broad practical scope
Existing and new rules must be explicitly assessed in terms of whether they can be implemented using the latest technologies. Among other areas, there is scope for this in risk management, regulatory reporting, customer identification and anti-money laundering, as well as overarching corporate governance. The supervisory authorities, for their part, can benefit from modern technology that will help them to monitor and enforce banks’ and financial service providers’ compliance with regulations more effectively.
Position of the Swiss Bankers Association