Earlier this week, Commonwealth Bank of Australia (CBA) announced it has completed a regtech pilot with ING to simplify processing of information and implementation of regulation using the Markets in Financial Instruments Directive II (MiFID II) as a test case.
According to CBA, the project was completed in partnership with fintech, Ascent Technologies and law firm Pinsent Masons. It used NLP and AI to interpret and convert 1.5 million paragraphs of regulation into a series of bitesize, actionable tasks appropriate for the banks. CBA noted that by using Ascent’s intelligent technology, the banks were able to quickly identify items in the regulation that could be reviewed and actioned, saving hundreds of hours of manual processing.
Ian Hollowbread, Director of Enterprise Office at ING UK, stated:
“We are proud to have taken part in this state-of-the-art pilot that brings major industry players, regulators and new technologies together, to explore solutions to challenges we all face today. This pilot has brought into focus a number of barriers to RegTech adoption, but also see its massive potential. Only by uniting the industry, RegTech and regulators, can we begin to bridge the gap between technological potential and the cost of becoming regulatory compliant.”
Supun King-Jayawardana, Head of London Innovation Lab, Commonwealth Bank of Australia (CBA), also commented:
“This pilot provides all participants the opportunity to test some of the latest applications against complex industry regulation. When RegTech meets financial services, we create opportunities for banks, start-ups and regulators to collaborate and solve industry-wide challenges. By working together, we can share best practice in due diligence, experimentation costs, business knowledge and resources – ultimately driving great outcomes for all parties.”
Brian Clark, CEO & Co-Founder at Ascent Technologies Inc, added:
“This pilot demonstrates the power of RegTech, and we’re pleased that our solutions proved effective at automating and enhancing MiFID II compliance processes. Ascent uses NLP and AI to help transform complex regulatory data into actionable knowledge. By automating their compliance processes with Ascent’s first-of-its-kind technology, users can save significant time and money while reducing their regulatory risk. We were proud to work with ING, CBA, FCA and Pinsent Masons on this project and look forward to continued collaboration.”