we heard how organisations have successfully implemented regtech solutions in a number of areas within their risk management and regulatory compliance functions. these areas included credit risk management, stress testing, sales practice and suitability, employee conduct and monitoring, regulatory reporting, and regulatory compliance obligations. it is therefore very clear that the use of regtech goes far beyond anti - money laundering and financial crime compliance, although that area of use cases is certainly a very good place to start any regtech adoption journey! 12. if you are like me, you would have noted down many practical tips offered by our speakers today. let me share four key takeaways that i noted for overcoming the challenges connected with regtech adoption : first, buy - in is crucial. a range of stakeholders from across financial institutions need to buy in to regtech and collaborate fully in adopting it. we have heard how a supportive leadership can shape an organisation ’ s culture, and in turn drive regtech - led transformations. middle management and operational staff need to support this as well. second, data is king. this point has been made repeatedly today. to quote mr david bailey, “ data and regtech go hand - in - hand and data must be at the heart of any regtech conversation ”. good quality data means regtech can be used to build effective models and generate decision - making insights. it is vital to build trust with your customers if you want to acquire sufficient quality data. you then need to store and transform that data according to a solid set of data governance rules, identify data which is relevant, and use it in an intelligent and responsible way. third, proper risk management remains as important as ever. in hong kong, we are proud of our banks with their long histories, but we recognise that their legacy infrastructure can potentially hold back regtech adoption. one key takeaway from today is the reminder that rome was not built in a day. banks can start on a small scale, for example by conducting a proof of concept ( poc ) in a business unit or implementing regtech in a cloud - based environment in a newly established part of their business. as a regulator, i must point out that when navigating technologies and determining how to put regtech to use, it is essential that banks adopt a robust risk assessment framework to evaluate and manage the associated risks. this resonates with ms jane fraser ’ s suggestions that banks should be mindful of risks such as data security and third - party operational risks that come

##ossmacher of credit suisse in the “ pulse of regtech ” session. they talked about how banks can leverage alternative datasets to improve the loan application process and enhance the evaluation of product suitability. we also heard how they have designed solutions that put customer experience at the centre – by respecting customer needs, eliminating duplication, offering the most suitable products and, most importantly, keeping customers protected. the use cases discussed in those sessions showed that regtech offers exciting opportunities that go beyond a compliance tick - box exercise and greatly improve customer experience and satisfaction. 7. thirdly, regtech benefits regulators : earlier, deputy governor fan had this to say, “ in the era of the digital economy, the financial business environment is opening up more and more, services are becoming more virtual, business boundaries are blurring, and financial risks are becoming more contagious. ” we at the hkma recognise the importance of regtech in managing the risks associated with the digital economy. regtech can play a critical role in helping banks to maintain operational resilience, and that in turn makes it easier for regulators to better manage overall risk in the financial system. 8. i particularly enjoyed the analogy made by mr benoit cœure. indeed, we regulators are often 1 / 4 bis central bankers'speeches referred to as watchdogs. benoit is more specific. he noted that banks are like greyhounds – usually fast at adopting new technologies ; while regulators are like bloodhounds – a bit slow and stubborn but having financial stability as their key priority. in fact though, i have to say that the hkma is increasingly acting like a greyhound in our efforts to promote regtech. how to overcome regtech adoption challenges 9. so we have put forward clear evidence that regtech can benefit many different stakeholders. but we also know that there are challenges associated with regtech adoption. part of our regtech 2025 vision is to see regtech being extensively adopted by the hong kong banking sector. to facilitate this, we aim to share success stories of regtech implementation – how others overcame the challenges and develop practical guidance to banks. 10. many success stories have been showcased in today ’ s event. the roundtable with tech giants session offered valuable insights into how to use cloud and artificial intelligence to aid regtech adoption. in the pulse of regtech and masterclass sessions, our guest speakers shared real - life stories on practical drivers for regtech adoption and factors in successful solution implementation. 11.