RegTech – technology to make regulatory burdens easier and more efficient – has received a shot of credibility from the government-paid economists at the Productivity Commission.
A report by the Productivity Commission is an influential step forward for RegTech. Who better than economists to give a rational, spin-free assessment of RegTech’s benefits.
In our words, the overall conclusion from the study is that RegTech is real. While there is hype, there is also substance.
The study has the potential to encourage government policy makers to provide more funding and to be more pro-active in RegTech’s adoption.
RegTech is not the easiest type of tech to implement. Hence the importance of governments to create an environment or (data) infrastructure so that RegTech is a consideration when regulations are being devised or changed. When RegTech has to be appended to existing processes, the implementation challenge is exponentially more difficult and costly.
The Productivity Commission noted that “Australia is viewed as being comparatively well placed internationally for widespread adoption of regtech. Yet, with the exception of financial system applications, extensive use of regtech remains relatively uncommon.”
A few years ago there was a lot of hope in the interest shown by Data61 in RegTech. Unfortunately, it seems that this interest has faded in preference for ‘sexier’ endeavours such as AI-powered flying robots. Perhaps Data61 will also take note of the Commission’s study.