Accelerating RegTech and SupTech in the European Union's Internal Markets
The recent Covid pandemic indicated in the most violent way the difference between digitization (having in place digital capacities to perform organizational duties), and digitalization (having, next to the capacity, also the appropriate routines that will immerse digital capacities efficiently into the value chain). One of the sectors that the need for digitalization became really prominent was the one of RegTech and SupTech. The operations of regulatory and supervisory mechanisms suffered from a significant blow in the moments of severe social distancing. In many Member-States with under-developed digital capacities and skills the performance of regulatory and supervisory monitoring became dangerously thin. This indicates the need for an immediate transition to digitalized models of supervision and regulatory monitoring. The EU systematically reviews current case studies of many regulatory authorities that use enchasing technologies like AI, data analytics and blockchain and examines mechanisms of technological transfer. This debate is also touched by the Digital Finance file of the European Parliament which makes a strong statement that the transition to digital finance should go hand in hand with the transition to RegTech and SupTech organizational capacities. Also, digital finace is in line with a set of regulatory policy initiatives like the EU Data Strategy, the White Paper on AI, and the Report of the Digital Future of the EU, the aspiration of which is to make EU the global leader in the digital era. This policy target is strongly underpinned by a dedicated financial policy to support innovation ecosystems and startups in this area through investment tools of the InvestEU and the new Horizon Europe, the development of regulatory sandboxes for testing innovative solution and a coordination of the policies of the European Commission, the European Banking Authority and the European Central Bank. The intervention will conclude with some personal reflections of how this transition to enhanced RegTech and SupTech solutions can be implemented efficiently within the organizations.
Dimitris is Financial Technology and Innovation Policy specialist at the European Parliament. He has over seventeen years of experience in Financial Regulation, Financial Services and Corporate Finance. He is ranked among the 100-Top world influencers in the area of RegTech and Blockchain and he is frequent speaker in top-tier universities, international organizations, the World Economic Forum and professional summits on FinTech, RegTech, Blockchain, Artificial Intelligence and the Digital Disruption of Banking and Financial Sector, in Europe, America and Asia. He is also the Founder and CEO of the World Future Foundation (WFF), an international think-tank that explores the impact of digital disruption in Business, Government and Society. Dimitris holds a master's degree with specialization in Finance from Harvard University and he is author of two books on innovative financial models and blockchain technology. both published by Palgrave McMillan.