A year and a half since Covid-19 spread out across the globe, financial institutions in Asia-Pacific have continued to look for new ways to operate in a world where remote working is necessary, heavily relying on technology to get business processes executed and create meaningful customer experiences.

Remote working has been a challenge for many APAC firms. Around 74% of APAC-based organizations surveyed by data provider Refinitiv say operating with a remote workforce makes cyberattacks harder to contain.

Aside from investing in tools that ensure smooth business processes, financial firms in particular should also invest in regtech ( regulatory technology ) to enhance their back-end risk management abilities.

This is top-of-mind for many Hong Kong financial firms. According to recent study by technology company FIS, 73% of Hong Kong financial firms surveyed want to focus their regtech investments on improving their risk management functions. Around a quarter of the survey respondents believe that new regulations and compliance requirements will be among the biggest challenges confronting their business in the next 12 months.

Financial regulators themselves are looking to encourage regtech adoption with the Hong Kong Monetary Authority ( HKMA ) launching this June a practical guide on the implementation of regtech solutions, incorporating technologies such a cloud computing to improve risk management processes.

As we operate increasingly in an integrated and digital world, expect continued investment in regtech solutions to enable business continuity. The global regtech market is forecast to grow from US$6.3 billion in 2020 to US$16 billion by 2025 at a growth rate of 25% per year, with APAC expected to have the highest growth rate over that period, according to market researcher ReportLinker.