Central Banks Lag in RegTech Adoption: Fintech Benchmarks 2024 Unveils a Slow Shift Toward Innovation

The Fintech Benchmarks 2024 report, which gleaned insights from 36 central banks, reveals a concerning divide in the adoption of RegTech tools. Among 22 central banks responding to inquiries about their use of specific technologies, a significant 36.4% indicated they are not utilizing any RegTech tools at all. This gap highlights not only the challenges facing regulatory bodies in keeping pace with rapid technological advancements but also the potential missed opportunities for enhancing efficiency, accuracy, and security in regulatory processes.

The slow adoption rate of RegTech strategies among central banks can be attributed to several factors, including budget constraints, a lack of technical expertise, and the inherent complexities of integrating new technologies into established systems. Despite these hurdles, the potential benefits of RegTech are undeniable. As industry experts note, the advent of Digital Public Infrastructure (DPI), open banking, and Artificial Intelligence (AI) in the banking sector heralds a transformative era for regulatory compliance. These technologies promise not only to streamline and automate compliance processes but also to provide ongoing support for managing regulatory changes.

Read the full article in BNN here.

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