FCA report cites biometrics as the future of UK regtech industry

The Financial Conduct Authority (FCA) has released new research that finds that blockchain and biometrics could pave the future for the UK’s regtech industry, according to a report by Banking Tech.

The research follows the FCA’s call for input in November 2015 regarding the development and adoption of regtech, which prompted more than 350 responses.

Forty-three percent of those responses came from technology suppliers, followed by 23% from financial services organizations, and 23% from consultancies.

In its 18-page report, the FCA included the responses spanning a wide range of opinions and organized them into four distinct groups: efficiency and collaboration; integration, standards and understanding; predict, learn and simplify; and new directions.

The report did not explicitly state which area generated greater interest or urgency from the respondents, but it did cite biometric technology as a technology of the future as it “could allow more efficient and/or robust ways to verify identity”.

In addition, many respondents called blockchain/distributed ledger a “new direction”, while others wanted greater use of cloud technology.

Respondents also called on the FCA to increase its role in future regtech through “improved collaboration and engagement” and introducing an FCA certification of regtech.

For 2016 and 2017, the FCA failed to provide specific details regarding its plans but said it will “work to promote innovation” and added that “creating a competitive marketplace is a priority” for regtech.

The FCA said it will consider all of the feedback and intends to “concentrate [its] efforts on increasing [its] engagement and collaboration with the regtech community”.

Article Topics

banking  |  biometrics  |  blockchain  |  Financial Conduct Authority (FCA)  |  fintech  |  UK