RegTech and SupTech: innovation, evolution and FCA development
In the latest episode of the RegTech 20:20 podcast from Encompass, guest speaker Francesca Hopwood Road, Head of RegTech and Advanced Analytics at the Financial Conduct Authority (FCA), is interviewed about how the regulator is working with those within the industry.
This episode also focuses on the link between RegTech and SupTech [Supervisory Technology], with Francesca providing expert insight into how SupTech has evolved.
During the discussion, she makes reference to TechSprints, events that bring people together to focus on problem statements like financial crime and regulation.
Reflecting on their purpose and form, she states that:
Earlier this year, we published a report evaluating the lessons we have learned from hosting numerous TechSprints, which has been a growing way of bringing experts together to crack pain points that we are all experiencing
Francesca breaks down the data strategy and highlights the work of the FCA and how it strives to be data enabled and data led. She notes that “there is a lot of work that continues around really understanding what activity is alive within the wider RegTech ecosystem”, which allows the FCA to discover new areas of work.
In this podcast, Francesca acknowledges that:
In the early days, the capabilities and techniques that the FCA wanted to test, like network analytics, were observed in the RegTech portfolio, so, since that time, the work programme around SupTech has really developed
This has helped them harness their ability regarding efficiency and automation as an organization.
In addition, she goes on to speak about the COVID-19 pandemic and the effects it is having across the wider community and market. The FCA conducted research, reaching out to networks to understand the emerging insights, and Francesca continued “we wanted to know what the negative and positive impact was on the RegTech ecosystem, working out what our role as a regulator might be”. Touching on the long-term impact, she told how the crisis provides an opportunity for firms in how they navigate their way through it in a way that puts technology at the forefront.
When asked about the future of the RegTech sector, Francesca notes that “internationally, there is a huge opportunity” and hopes that the market seizes these opportunities.