Bringing innovators to pioneer the next generation of tools and techniques for market supervision and policy analysis

Project description

3Our vision

We believe the future of financial regulation, supervision, and policymaking lies in using technology and data to improve the speed, quality, and comprehensiveness of information in support of targeted, risk-based decision-making. We also believe a RegTech approach can reduce the cost of compliance for financial institutions and increase consumer trust and participation in the financial system.

The RegTech for Regulators Accelerator (R2A) partners with leading financial sector authorities to pioneer the next generation of tools and techniques for market supervision and policy analysis.

4What does R2A do?

Launched in October 2016, R2A will partner with a select set of leading financial authorities over twenty months to develop and test next-generation RegTech prototypes that could serve as examples for other financial authorities to follow. R2A engages closely with technology innovators, creating structured opportunities for innovators to (i) understand supervisory and regulatory challenges faced by financial authorities, and (ii) work collaboratively to design and test potential solutions.

R2A is an accelerator for the deployment of RegTech solutions for financial authorities and a contributor to the creation of a global RegTech marketplace.

5Possible applications of RegTech for RegulatorsRegTech can potentially be applied to address a wide set of regulatory challenges.

Crowdsourced consumer feedback and complaints

Geospatial analysis Real-time mobile surveys

(SMS & IVR)

Shared industry KYC, authentication system

Agent registry Digital IDs

Standardized, automated reporting tools

Analysis of transactional data for market / policy intelligence

Open data platforms Data visualization & analysis

tools

CONSUMERPROTECTION

DATAANALYSIS

RISK-BASED KYC/AML/CFT

R2A offers the opportunity for innovators to collaborate with financial authorities to pioneer a digital-first approach to market oversight and

policy development.

6Examples of possible applicationsTechnologies for better analysing existing data

Dashboards and other visualizations to allow for more up-to-date, customizable policy analysis and report generation.

Tools for improving the timeliness and reliability of compliance reporting data (e.g., APIs), and for making them suitable for more complex analytics.

Machine learning to identify patterns among a wealth of data on DFS transactions across various channels.

Prescriptive analytics to better target scarce resources for deeper review and on-site supervision.

Technologies for analysing new data

Mechanisms for crowdsourcing DFS consumer experiences from, e.g., transactions or complaints, to allow the regulator to understand their experience and needs.

Interactive technologies, such as chat bots, that take advantage of existing data and human resources to “triage” incoming communication and direct consumers to their appropriate point of contact.

Automated analysis of information available on the internet (e.g., posts on social media to proactively identify issues (e.g., natural language processing).

7How does R2A work?

Identifying potential solutions:

Engaging innovators through competitions to crowdsource innovative

ideas that meet regulatory and

supervisory needs.

Months 1-6 Months 10-20Months 7-10

R2A’s twenty-month program consists of three phases:

Defining the opportunity:

Assessing partnering with financial authorities their needs, selecting a specific area of opportunity, and

defining the requirements of potential solutions.

Testing prototypes: Co-design, development,

and testing of ideas among financial authorities and

innovators.

I II III

8Expected outcomes

1

Innovators have familiarized with

financial authorities’ work streams, pain

points and requirements.

Leading financial authorities and innovators

in three markets have prototyped cutting edge technology solutions for

market oversight and policy development.

2

9What R2A offers to its partnersBRIDGE WITH INNOVATORSTECHNICAL ASSISTANCE

Experts in regulation, supervision and the use of artificial intelligence and other technologies to (i) work with partner financial authorities to select use case for application of RegTech solution, and (ii) facilitate identification and selection of innovators to prototype RegTech solution.

Support for Project Lead and other partner financial authority staff.

Selection of innovators to prototype RegTech solution (through competition).

Funding selected innovators.

KNOWLEDGE EXCHANGE Peer learning

opportunities (both in-person and online) with cohort of financial authorities, expert FinTech advisors, and other selected stakeholders in the emerging RegTech community.

PROJECT MANAGEMENT Management of entire

process from identification of use case and selection of innovators through development and testing of prototype RegTech solution.

What is R2A looking for in innovators?

11Profile of successful innovator(s)

1.Capability: demonstrated ability to build and/or integrate with large public-facing API, intelligently design user interfaces for non-technical and technical customers, properly write documentation and maintain a scaled enterprise ecosystem.

2.Experience: with data analytics and building large-scale user-interactive applications.

3.Knowledge: institutional understanding of tech industry best practices and familiarity with cutting edge technologies.

4.Resources: ability to dedicate developers, a designer and a project manager full-time throughout prototype development and testing stage.

R2A overarching goal is to facilitate matchmaking opportunities between innovators and financial authorities. Country-specific innovator’s engagement approaches are driven by the nature and complexity of the identified supervisory and regulatory challenge that the RegTech prototype shall address.

Why should innovators engage with R2A ?

13

Benefits for innovators to engage with R2ABUSINESS OPPORTUNITIES

Develop or deepen relationships with the community of emerging market financial authorities.

Receive a monetary award to develop and test a RegTech prototype with a partner financial authority.

Register in R2A RegTech for Regulators vendor database.

Participate in summits or interactive sessions to (i) understand the needs of emerging market financial authorities and (ii) explore innovative solutions.

RECOGNITION

Become known as a pioneer within the emerging RegTech for Regulators community.

Gain recognition for ideas and products submitted or pitched to R2A and partner financial authorities.

Benefit from association with prominent funding organizations such as the Bill & Melinda Gates Foundation, the Omidyar Network and US Agency for International Development.

ContactR2A@bfaglobal.com