About the RegTech for Regulators Accelerator
Financial markets are undergoing a digital, data-driven revolution. Financial authorities have difficulty keeping up with this rapid innovation. Regulatory and supervisory systems are falling behind because their capacity has not increased commensurately with the market’s expansion and complexity, and the inclusion of millions of new users. The future of financial supervision and regulation lies in harnessing new technologies to enhance authorities’ capabilities and deliver smart solutions.
Accessing new datasets and analyzing available data more effectively allows financial authorities to establish a body of knowledge and evidence to drive smart policy reforms that promote financial inclusion and ensure financial stability, integrity, and consumer protection. R2A accelerates these advances by helping authorities re-imagine how they collect and manage data, and by developing new solutions that strengthen their capabilities.
History and Program Highlights
The RegTech for Regulators Accelerator (R2A) launched in October 2016 with support from the Bill & Melinda Gates Foundation, the Omidyar Network, and USAID, and fiscal sponsorship from Rockefeller Philanthropy Advisors. It was created to pioneer the development of innovative solutions for financial sector supervision, regulation, and policy analysis. The project vision is to contribute to the creation of a global SupTech marketplace where robust solutions are available and demonstrated for key use cases. BFA Global is the managing partner and lead implementer of the project.
In 2018, R2A partnered with two financial authorities – the Bangko Sentral ng Pilipinas (BSP) and the Mexican Comisión Nacional Bancaria y de Valores (CNBV) – and three technology firms selected through global competitions – CRT, Gestell, and Sinitic – to test and develop three SupTech prototypes. After successful delivery of the prototypes, two solutions received additional investments to be fully deployed – the two solutions were also awarded the Central Banking 2019 award for innovation in regtech and fintech.
We also launched an AML working group with the aim to provide AML supervisors with a platform to discuss “Solutions to Strengthen Financial Integrity and Combat Financial Crime.” The heterogeneous group of participants includes financial authorities from Uganda, Mexico, Peru, the Philippines, Australia, the United Kingdom, Singapore and the United States responsible for AML/CFT regulation and supervision from a variety of high-income, middle-income, and low-income countries.
Meanwhile, with funds from the Central Bank of Nigeria and the Bill & Melinda Gates Foundation, our team and the developers of the Nigeria Inter-Bank Settlement Systems PLC developed the Nigeria DataStack.
In 2019 R2A received additional funds from Flourish to complete the work started in 2018 and develop a partnership with the Bank for International Settlements’ Financial Stability Institute to run a taxonomy of the many experiments undertaken by financial authorities around the globe. The outcomes of this work are the report “SupTech Generations” and the solution tracker.
In addition, we collaborated with the BIS, other global stakeholders (e.g., the World Bank and the Alliance for Financial Inclusion), and financial authorities (e.g., the San Francisco Federal Reserve and Canadian Office of the Superintendent of Financial Institutions (OSFI) to share in conferences and workshops the outcomes and lessons from our work.
Building an Inclusive Digital Payments Ecosystem: The Way Forward
This Diagnostic Report by UN-based Better Than Cash Alliance and BFA Global, assesses Ghana’s progress to date, and sets out specific policy recommendations that can accelerate Ghana’s journey toward a more digital economy. The report draws on a fast-growing body of … Continue reading →
“Necessity is the mother of invention” Far from — and sometimes right under — inaccessible power lines throughout Africa, the need for light, for charging cell phones, for listening to radios doesn’t go away. As we ventured out to … Continue reading →
Competition & DFS Working Papers
1. Modularization of DFS and Competition Issues Digital financial services (DFS) have been modularized through the rise of digital e-commerce superplatforms and the ascent of fintech firms, and this modularization leads to specific competition issues and regulatory distortions. This working … Continue reading →