Skip to Main Content
The REGTECH Book
book

The REGTECH Book

by Janos Barberis, Douglas W. Arner, Ross P. Buckley
August 2019
Intermediate to advanced content levelIntermediate to advanced
392 pages
14h 11m
English
Wiley
Content preview from The REGTECH Book

RegTech and the Science of Regulation

By Shirish Netke

CEO, Amberoon Inc

Science Fiction and Banking Reality

In the movie Minority Report, John Anderton is a law enforcement officer and chief of pre-crime in the year 2054 in Washington, DC. In an opening scene, the chief, played by Tom Cruise, arrests a man for murder – a crime he had planned to commit later that day. The premise of the story is that the future could be seen with enough certainty that a criminal could be arrested for a crime even before committing it.

The movie is science fiction. However, the state of the art of data science in predicting the future is not too far behind. A few years ago, Netflix analysed 70,000 attributes of TV shows to predict the success of its series House of Cards. Target analysed shopping patterns to infer a woman was pregnant before her family knew about it. Doctors at the University of Ontario analysed data that could save the lives of premature babies in the ICU by predicting the onset of an infection.

Managing risk in banking is about predicting the future. The banking challenge is to measure, monitor, and analyse data that can be used to predict regulatory risk. Banks use quantitative analysis extensively to predict their exposure to credit risk and market risk. Compliance and regulatory risk, which is a part of operational risk, have traditionally been harder to quantify and to predict. The advent of new technology has the potential to change that.

Modern technology brings the ...

Become an O’Reilly member and get unlimited access to this title plus top books and audiobooks from O’Reilly and nearly 200 top publishers, thousands of courses curated by job role, 150+ live events each month,
and much more.
Start your free trial

You might also like

The PAYTECH Book

The PAYTECH Book

Susanne Chishti, Tony Craddock, Robert Courtneidge, Markos Zachariadis
The INSURTECH Book

The INSURTECH Book

Sabine L.B VanderLinden, Shân M. Millie, Nicole Anderson, Susanne Chishti
The WEALTHTECH Book

The WEALTHTECH Book

Susanne Chishti, Thomas Puschmann

Publisher Resources

ISBN: 9781119362142Purchase book