Crédit Agricole is a partner of RegTech Day, the first edition of which took place on 5 September at Palais Brongniart in Paris. The event is dedicated to transformation and innovation (process, data, digital, tech, AI, etc.) within the internal control functions of banks and financial institutions: General Inspection, Risk Management, Permanent Controls, Compliance, etc.
Created under the impetus and in collaboration with Crédit Agricole, this market event brings together all financial institutions, banks, insurance companies, regulators, as well as companies specialising in RegTech and technology providers.
Financial institutions are facing a regulatory avalanche at both European and national level. According to MEDEF, between 2017 and 2022, 502 new pieces of legislation were adopted, representing 3,670 pages, to which are added the so-called Level 2 or Level 3 regulations that derive from laws. There are also many delegated acts and soft law (guidelines, guides, Q&A, etc.).
Recently, the banking package, which brings together all the reforms and regulations relating to banks in Europe, was published in the Official Journal of the European Union: 1,030 pages of legislation, 140 implementing texts.
Beyond volume, regulations are becoming increasingly complex, and this is where new technologies can play an important role!
Innovate and strengthen our efficiency with new technologies and in particular AI tools
Faced with the challenge of maintaining specialised expertise on each topic, new technologies are an undeniable help. They rapidly synthesise a large amount of data in an intelligible way and make it possible to disseminate regulations in a very short time, thus facilitating their knowledge and compliance.
For control functions, the challenge now is to find the way to be as relevant as possible on these data, AI and ESG topics that have become essential.
In order to analyse the most complex and risky cases and also to secure the compliance of the uses of AI (GDPR, AI Act, etc.), the control functions will have to continue to be equipped and in particular to acquire more data/AI tools.
Some RegTechs help optimise regulatory processes in the financial sector while simplifying the journeys of customers and employees. And that’s good news!
Optimising the compliance culture
The challenge of compliance is to support the Group’s businesses on a daily basis so that this culture is integrated “natively” (this is the concept of Compliance by Design) into behaviours and processes, so that it is value-creating and facilitates customer journeys. This Compliance by Design is also optimised by new technologies.
Strengthening the proper use of data
The wealth of data inherent in the activity of financial institutions not only makes it possible to meet regulatory requirements, but also to fulfil the risk management mission that is incumbent on control functions. The use of data is not new but historical, whether to model (grand, provision, risk-weighted assets), detect (anomalies, weak signals, early warning indicators, etc.), aggregate, synthesise or report. In short, the use of data is key to moving towards “seamless” controls for our customers and employees.
In addition, technology and innovation in general offer a tremendous opportunity to optimise the operation between the various lines of defence of the risk management system and to smooth interactions. They enable Crédit Agricole to continue to protect customers and society.