UK regulator looking to use AI, machine-learning to enforce financial compliance
The Financial Conduct Authority, an independent U.K. financial regulatory body, is looking into the possible use of artificial intelligence (AI) and machine-learning tools to enforce regulatory compliance.Nick Cook, the FCA’s head of data and information operations, said that the regulator was “still learning”, and that feedback from a “call for input” from regulatory technology (regtech) firms was informing it about how to support the adoption of automated, digitized compliance.”We are looking at the extent to which we can make parts of our handbook initially machine-readable and then fully machine-executable … Effectively converting, probably initially our regulatory reporting rules, into truly unambiguous rules that machines can interpret and implement directly,” he told an audience at London Fintech Week, a financial technology (fintech) conference, on Tuesday.”The idea being that we can put out rules which are written manually in ways that can be fully and unambiguously interpreted by machines,” he added.Regtech (regulatory technology) is a subset of the financial technology (fintech) industry. Experts believe it could drastically reduce the cost of regulatory compliance, currently estimated to be around $80 billion globally. The industry’s current focus has been improving regulatory reporting procedures for banks and financial services firms, such as increased automation and…
Link to Full Article: UK regulator looking to use AI, machine-learning to enforce financial compliance
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