London, 21 February 2018 – ING and Commonwealth Bank of Australia (CBA) have successfully completed a RegTech pilot to simplify processing of information and implementation of regulation using the Markets in Financial Instruments Directive II (MiFID II) as a test case.
The Financial Conduct Authority (FCA) was a key member of this experiment and participated as an observer of the project. The FCA understands the benefits of collaboration in areas where an industry solution is beneficial for the overall system, such as compliance. Observing the project gave the FCA greater understanding of the potential applications of RegTech, Natural Language Processing (NLP) and Artificial Intelligence (AI), and how these technologies can help organisations simplify and meet their compliance obligations.
The project, completed in partnership with fintech, Ascent Technologies and law firm Pinsent Masons, used NLP and AI to interpret and convert 1.5 million paragraphs of regulation into a series of bitesize, actionable tasks appropriate for the banks.
Using Ascent’s intelligent technology, the banks were able to quickly identify items in the regulation that could be reviewed and actioned, saving hundreds of hours of manual processing.
Ian Hollowbread, Director, Enterprise Office, ING UK said, “We are proud to have taken part in this state-of-the-art pilot that brings major industry players, regulators and new technologies together, to explore solutions to challenges we all face today. This pilot has brought into focus a number of barriers to RegTech adoption, but also see its massive potential. Only by uniting the industry, RegTech and regulators, can we begin to bridge the gap between technological potential and the cost of becoming regulatory compliant.”
Supun King-Jayawardana, Head of London Innovation Lab, Commonwealth Bank of Australia (CBA), said, “This pilot provides all participants the opportunity to test some of the latest applications against complex industry regulation. When RegTech meets financial services, we create opportunities for banks, start-ups and regulators to collaborate and solve industry-wide challenges. By working together, we can share best practice in due diligence, experimentation costs, business knowledge and resources – ultimately driving great outcomes for all parties.”
Brian Clark, CEO & Co-Founder at Ascent Technologies Inc, said, “This pilot demonstrates the power of RegTech, and we’re pleased that our solutions proved effective at automating and enhancing MiFID II compliance processes. Ascent uses NLP and AI to help transform complex regulatory data into actionable knowledge. By automating their compliance processes with Ascent's first-of-its-kind technology, users can save significant time and money while reducing their regulatory risk. We were proud to work with ING, CBA, FCA and Pinsent Masons on this project and look forward to continued collaboration.”
Luke Scanlon, Head of Fintech Propositions, at Pinsent Masons, said, “We see great potential for RegTech solutions to assist regulated businesses in making their approach to remediation more efficient and effective over the long-term. From a legal adviser’s perspective, it means that more time and resource can be spent on helping clients develop regulatory strategy and understand the impact of, and opportunities to be gained from, regulation on their businesses.”
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Notes to editors
ING is a global financial institution with a strong European base, offering banking services through its operating company ING Bank. The purpose of ING Bank is empowering people to stay a step ahead in life and in business. ING Bank’s 52,000 employees offer retail and wholesale banking services to customers in over 40 countries. ING Group shares are listed on the exchanges of Amsterdam (INGA AS, INGA.AS), Brussels and on the New York Stock Exchange (ADRs: ING US, ING.N).
About Commonwealth Bank of Australia
Commonwealth Bank is Australia’s leading provider of integrated financial services, including retail, premium, business and institutional banking, funds management, superannuation, insurance, investment and share-broking products and services.
Commonwealth Bank’s Institutional Banking & Markets (IB&M) division has global reach extends through offices in Auckland, Beijing, Hong Kong, Houston, London, New York, Shanghai, Singapore, Tokyo and throughout Australia. IB&M has core capabilities across transactional and working capital banking, debt financing solutions, financial markets and risk management products. The business is responsible for developing and providing products to major corporate and government clients active in our specialist sectors of transport, utilities, natural resources and financial institutions. IB&M service Australian and New Zealand clients active in cross border trades and investments.
About Ascent Technologies Inc.
Ascent Technologies is a RegTech firm that helps customers simplify and automate their regulatory compliance programs. Its IntaaS (Intelligence-as-a-Service) platform uses a proprietary vertical AI and automation processes to convert the rules and documents of a regulatory body into units of intelligence that are distributed to customers online. Ascent's RegTech products allow customers to automate their regulatory compliance function by helping them to identify, monitor, and manage their regulatory obligations, saving time and money and reducing regulatory risks. Learn more at www.ascentregtech.com.
About Pinsent Masons
Pinsent Masons is a global 100 law firm, specialising particularly in the energy, infrastructure, financial services, real estate and advanced manufacturing and technology sectors. The firm employs nearly 3000 people worldwide, including around 1500 lawyers and 400 partners. The firm's international footprint encompasses seven offices across Asia Pacific, two offices in the Middle East, five offices in continental Europe and one in Africa. The firm also has comprehensive coverage across each of the UK's three legal jurisdictions.
Pinsent Masons LLP is a limited liability partnership registered in England & Wales (registered number: OC333653) authorised and regulated by the Solicitors Regulation Authority, and by the appropriate regulatory body in the other jurisdictions in which it operates. The word ‘partner’, used in relation to the LLP, refers to a member of the LLP or an employee or consultant of the LLP or any affiliated firm who is a lawyer with equivalent standing and qualifications. A list of the members of the LLP, and of those non-members who are designated as partners, is displayed at the LLP’s registered office: 30 Crown Place, London EC2A 4ES, United Kingdom.
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