Microsoft Joins RegTech Association Australia for enhanced AI in Banking

Duncan Taylor, director of financial services, Microsoft

RegTech Association, Australia has announced its membership with Microsoft and is keen to exhibit to regulators how AI could improve bank compliance. The new membership comes as a potential rescue to concerns exposed by the banking royal commission.

Microsoft with its regulatory compliance applications available on Azure cloud services believes AI technology is an area which is growing rapidly and could grant banks to identify transactions or advice in breach of highly complex regulatory aspects.

Duncan Taylor, director of financial services, Microsoft said “When you consider there are over 300 million pages of regulatory compliance and that’s going up, along with the volume of transactions and financial advice and loans that are written, it’s an impossible challenge to throw enough human effort to interpret whether a transaction or piece of advice been compliant, and that’s the challenge that has come out of the royal commission. Most regulated entities can’t do the discovery on their business to verify compliance, because they can’t throw enough people at it, and that is where we think the real opportunity for this type of technology is.”

With the royal commission highlighting the inadequacy of existing banks’ legacy technology systems to be at par with regulatory obligations, it becomes critical for banks and financial services to adopt technologies like AI as one of the way-forward option. With all the stakeholders working towards many questions such as transparency of the technology and its complex algorithms, the RegTech Association board believes AI can be significantly helpful.

About RegTech Association: The RegTech Association was founded in 2017 as a non-profit organisation that focuses on what is needed to support the growth of the sector. The association brings together government, regulators, regulated entities, professional services and founder-led RegTech companies to ensure collaboration between all of the parties, promoting the RegTech industry as widely as possible, resulting in action in the uptake of RegTech proof of concepts and deployed RegTech solutions across the ecosystem.

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