A working meeting of the FinTech Committee of the IT Ukraine Association with representatives of the National Bank of Ukraine took place, focusing on the development of regulatory technologies (RegTech) in Ukraine and the formation of a future ecosystem for cooperation between the regulator, financial institutions and technology companies.
During the meeting, the NBU team responsible for the development of regulatory technologies presented the current stage of work on the RegTech development roadmap for Ukraine and shared the results of a preliminary market study.
The main objective of such meetings is to collect market feedback, understand the key challenges faced by companies, and identify potential areas of cooperation between the regulator and the technology ecosystem.
What the NBU presented
During the meeting, NBU representatives shared insights on:
-
the results of a survey of financial market participants regarding the use of RegTech solutions;
-
key barriers to the implementation of compliance and regulatory reporting technologies;
-
preliminary directions for the development of the RegTech ecosystem in Ukraine.
Among the key focus areas for the development of regulatory technologies, the NBU identified:
-
automation of regulatory reporting;
-
regulatory risk management;
-
AML and sanctions compliance;
-
fraud prevention tools.
These areas are considered critical for improving the efficiency of interaction between the regulator and the financial sector.
The role of the market and technology companies
A separate emphasis during the discussion was placed on the fact that the development of RegTech is impossible without active participation from the market. The NBU expects the industry to provide:
-
proposals for specific technological solutions and tools;
-
identification of key “white spaces” in the market;
-
suggestions for potential formats of cooperation;
-
expert feedback on regulatory barriers.
For its part, the regulator is ready to act as a platform for dialogue and coordination, while emphasising the importance of initiative from the market and professional associations.
Challenges discussed
During the discussion, FinTech Committee participants also raised a number of systemic challenges for the development of RegTech in Ukraine, including:
-
the high cost of developing compliance technologies;
-
duplication of similar solutions by different companies;
-
regulatory capital constraints that may limit investments in technology;
-
insufficient coordination between technology companies and financial institutions.
Participants also discussed the possibility of collectively developing certain RegTech solutions that could be used by a wider range of financial market participants.
Next steps
Following the meeting, the parties agreed to continue collecting proposals and initiatives from market participants, identify representatives from the Association to take part in upcoming working discussions, and prepare consolidated proposals for the development of the RegTech ecosystem in Ukraine.
