Like this Fintech Week, that event will also use available technology to bring together delegates from around the world. So stay tuned for further details of the event. 50. Also in the first half of 2021, we will be announcing details of our first Regtech challenge. 51. And then looking ahead to the second half of 2021, we expect to set up the “Regtech Knowledge Hub”. 52. Around the same time, we also plan to release a Regtech Adoption Index that will visualise our progress in increasing Regtech adoption over time. In the meantime, we are also working hard to flesh out our thinking behind the other recommendations. For example, we would explore the benefits of providing appropriate incentives and other assistance to stimulate Regtech solution innovation in Hong Kong. Conclusion 53. So to conclude, I hope that through this presentation, I have sent a clear message to the audience that the value of Regtech in banking is coming to the fore in Hong Kong. Industry stakeholders should realise that Regtech and its underlying technologies are the way of the future. 54. The HKMA strongly believes that Hong Kong has the right foundations to support a thriving Regtech ecosystem, and ultimately become a Regtech hub. Our city already enjoys broad fintech capabilities, strong support for technology businesses, a significant and wellestablished financial services sector, and most important of all, very supportive financial regulators. 55.
I presume that the audience is conversant with the idea of Regtech. But it remains good to define upfront what we are dealing with. So, by Regtech, which is a subset of fintech, we are referring to a specific focus on technologies that can facilitate more effective or efficient regulatory compliance or risk management by financial firms. The benefits of Regtech 6. So, why do we need Regtech adoption? That’s because we believe that Regtech solutions offer clear benefits to banks, customers, and regulators alike. 7. For Banks, they can leverage on Regtech solutions to enhance risk management quality and reduce costs. For example, in the area of financial crime and transaction monitoring, some banks still have teams dedicated to the manual remediation of false positives. But others have already used Regtech solutions to put automation in place. In doing so, not only have their alert outputs become more accurate, the process also freed up precious resources to focus on higher value tasks, including in particular their interactions with customers. 8. For Customers, Regtech delivers improved customer experience and drives financial inclusion. Several years ago, opening a bank account in Hong Kong could be timeconsuming. You often had to take time off work in order to visit a branch and physically verify your identity. By contrast, with the help of Regtech, today I can open a bank account in the comfort of my home or office in a matter of just minutes. 9. There are also benefits to banking supervisors and regulators.