* Hong Kong SFC to launch so-called 'fintech' data pilot
* Regulator hopes to improve the way it manages data
* SFC, regulators globally struggling to analyse data
By Michelle Price
HONG KONG, Sept 23 The Hong Kong securities
regulator is due next month to kick-off a pilot "fintech"
project as part of a broader plan to improve the way the
watchdog monitors and detects systemic risk, according to a
public tender document and individuals familiar with the plans.
The Securities and Futures Commission (SFC) will team-up
with a sample group of 20 banks and an external technology firm
to overhaul the way it uses financial data, according to the
tender document seeking a third party to help the SFC run the
Fintech describes a new wave of financial technology firms
that are poised to shake-up the global financial services
industry. Regulators and banks are increasingly using these new
technologies, such as artificial intelligence or data analytics,
to address new regulations and better manage risk - an emerging
phenomenon dubbed "regtech".
The SFC hopes to more intelligently analyse the data it
gathers from financial firms and the market to spot risks such
as product misselling or fraud.
"The goal is to make use of the fast evolution of fintech
and regtech globally to complement the SFC's daily work and
existing processes," it adds.
The SFC declined to comment.
Regulators globally are stepping-up efforts to identify
systemic risks, but many are struggling to effectively analyse
the growing volume of data they are gathering.
"The SFC has problems around different data sources,
different formats, different time-intervals. They spend a lot of
time capturing and aggregating data when they'd much rather
spend time deriving insight from the data," said one individual
with knowledge of the project.
The United Kingdom's Financial Conduct Authority has also
been promoting the development of "regtech" to help address a
range of regulatory challenges, including data management as
well as combatting money laundering and cyber risk.
(Reporting by Michelle Price; Editing by Simon Cameron-Moore)