How regtech went from innovative toy to regulatory saviour in Singapore -

Regulation technology is naturally becoming the financial industry’s answer to rising costs of compliance and regulation, especially after a tough year. But the old-school players have too many demands, and Singapore’s monetary authority wants them to snap out of it

Regulation technology was once a shiny new thing that financial institutions played around with, rather than using it

Now, with pressure from digital banks and fintechs, financial institutions see regtech as a must rather than just a showpiece of innovation

It also helps that the regulator, MAS, is not only walking the talk with adoption, but helping financial institutions adopt regtech

Regtech players are now seeing opportunities beyond the financial sector, as more industries go online, spurred on by Covid-19

Financial hub Singapore’s financial institutions are being oddly old-school about adopting a new technology. Regtech or regulation technology.

But regtech has quite the backer—the Monetary Authority of Singapore (MAS) has been championing regtech to financial institutions such as banks and financial services companies as a way to reduce compliance costs. In 2016, it even introduced a regulatory sandbox for regtech to grow.

But wait, what exactly is regtech? How can it help?

When you make a quick transfer to your friend’s account with a few clicks, you’re using fintech. But when the app you are using verifies if you’re real—pacifying the banks involved—you’re encountering regtech.

AUTHOR

Benjamin Cher

Based in Singapore, Ben covers news and stories from the hub of Southeast Asia. He covers the intersection of technology and business, and how it affects Singapore and Southeast Asia. Ben was previously a reporter at The Edge Singapore.

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