Recognising Regtech’s pivotal role in revolutionising risk management and compliance, the Hong Kong Monetary Authority (HKMA) developed a two-year roadmap in November 2020. As laid out in a White Paper entitled “Transforming Risk Management and Compliance: Harnessing the Power of Regtech”, the roadmap aims to promote Regtech adoption in the Hong Kong banking sector and help build a thriving Regtech ecosystem. This competition, “Global Regtech Challenge”, is a key highlight in the roadmap.
The Global Regtech Challenge is created with the aim of further growing the Hong Kong Regtech ecosystem. Regtech providers from around the world are invited to take part to showcase how their solutions may be applied to the Hong Kong market to help solve common risk management and regulatory compliance pain points experienced by banks. The Global Regtech Challenge is supported by KPMG Hong Kong and KPMG Matchi.
The problems to solve
As part of the research conducted during the development of the White Paper, a set of problem statements reflecting challenges faced by the industry as a whole were identified with the most potential to benefit from further Regtech adoption. Specifically, they span across four Regtech application areas as defined within the White Paper: -
1. Governance, Risk and Compliance (GRC) – Maintaining an inventory of all internal and external compliance obligations
2. Conduct & customer protection – Product Due Diligence & Risk Rating
3. Conduct & customer protection - Customer data privacy
4. Risk Management – Stress Testing
|How might we use technology to optimise regulatory compliance specifically related to:
||How might we use technology to support financial product developers as well as risk and compliance teams with their product due diligence and product risk rating assessments, specifically:
||With many data breaches occurring due to internal issues rather than external factors and with the significant increase in employees working remotely during the pandemic, how might we use technology-based solutions to help banks protect customer data and privacy especially in addressing increasing concerns around cyber risks and related regulatory compliance.
This problem statement is not concerned with monitoring for employee productivity purposes but rather, focused on employee security, risk and compliance aspects.
Some specific solution features could include:
|Stress testing in banks is strategically important and it is a requirement from regulators to model specific scenarios and report on the outcomes. A broad variety of risks are modelled at different frequencies including for example large exposures, market, liquidity, credit, reputational and strategic risk.
How might we, through a technology solution, support the delivery of the stress testing requirements by the different risk, compliance and business unit teams and reduce the resources required by for example:
Grow your footprint in Hong Kong:
Applications will be shortlisted by a panel comprising representatives from both the public and private sectors, including experts and leaders from the Regtech ecosystem, and each finalist will get an opportunity to:
|• Participate in a 3 week Hong Kong Contextualisation Programme
Meet the local Regtech network and learn the nuances of the local market.
• Work with high-value corporates
Quantify the relevance and value of your solution in the Hong Kong market.
|• Pitch your solution to industry specialists
Demo to leading banks in the Hong Kong Regtech ecosystem.
• Get exposure
Showcase your business and team at the HKMA's flagship Regtech event.
The deadline for submission is 16 April 2021 (Hong Kong Time).
Frequently Asked Questions
Q: Can I submit more than one application?
A: Yes, if your organisation has more than one solution and / or caters for multiple problem statements, you may submit an application to participate in each problem statement.
Q: Does my solution have to be launched to apply for this challenge?
A: Yes, only market ready solutions that are ready for a Proof of Value (POV) will be selected.
Q: How long will it take to complete my application?
A: Depending on the readiness of your marketing materials, the application form should take no longer than 45 minutes to complete.
Q: Do we need to travel to Hong Kong?
A: No, considering the pandemic situation, all activities including the applications, evaluations, Contextualisation Programme, pitching and winner announcement will be conducted virtually.
Q: How does the application process work?
A: To complete the application form, please login to Matchi and go here. If you are not yet a Matchi member, please register first and confirm your email address. Thereafter you can complete your application process. The end-to-end application process consists of 6 steps: