The arrival of digital banks has transformed the financial industry in Asia, but it also comes with added risks that have intensified amidst the COVID-19 pandemic. Watch the panel session on the digital banking landscape during the pandemic and the pitfalls, and find out how Synpulse can help accelerate your digital banking building while managing risks and ensuring regulatory compliance.
At the RegTech Asia Summit 2020 hosted by Regulation Asia, Xuna Shao, Regulatory Change Lead for Virtual Banking in Singapore, shared her insights during the panel discussion, “RegTech lessons from digital banking licenses”. Joining her were Debbie Man, Chief Compliance Officer of Ping An OneConnect Bank, Matthew Field, APAC Market Director for Anti Money Laundering of NICE Actimize, and Jamie Lloyd Evans, Independent Consultant and Contributor of Regulation Asia.
The panel highlighted how the public health crisis has impacted the landscape and rollout of digital banks in Asia Pacific while also discussing the risks and regulatory requirements that digital banks will encounter and need to mitigate when setting up.
While customer acquisition and the use of technology to drive business strategy are the top priorities for new digital banks, it’s equally important for digital banks to also turn their attention towards sound risk management. At the core, a strong risk governance framework is a pre-requisite for digital banks to confidently scale their products and service offerings.
However, as discussed in the panel session, the growth of virtual banking along with the adoption of innovative technology creates new risks which are complicated by the transaction speed and limited transparency that are inherent to an online banking environment. It is thus imperative that a new approach to risk management should be adopted.
When a digital bank is awarded the digital banking license, they’re expected to have their bank up and running within six to nine months. Apart from resource hiring, the bank will have to establish its key banking capabilities and put in place the corresponding technology and infrastructure. The short launch runway means there’s little time to waste in this race.
Synpulse can support you in performing the overall risk assessments, establishing robust risk culture and framework, and operationalising the risk monitoring and reporting processes to effectively manage risks and address regulatory requirements. We adopt a structured approach towards building your risk management capabilities through a model risk framework that is tailored to your needs.
The Synpulse risk management toolkit is an out-of-the-box solution with readily available policies and procedures, risk operating model and key risk metrics that have been customised for virtual and digital banks. Our extensive network of innovation partners coupled with our deep industry experience provide us with insights into identifying the most suitable technological solution to meet your needs.