RegTech is the automation and delivery of regulatory obligations in compliance and monitoring tools for the finance, wealth, insurance, telecommunication space. A RegTech Canada innovation centre is the location and facility that will create and support labs, training programs and help bring in early stage Canadian talents in order to create services and product solutions which will help meet the requirements of businesses and regulators. In addition, it will be the bridge that develops confidence and closer communal relation with the Canadian digital consumers. As the Canadian digital customers become more tech-savy with their transactional activities they look for our industry sectors to protect their data and against fraud. By having updated automated tools and solutions that follow the regulatory requirements Canadians can start to feel at ease and invest more in these financial, insurance and wealth sectors that provide service.
The Canadian banking environment have developed a global reputation of having stable and secured banks that avoided a major meltdown from the 2008 financial crisis like other countries such as the US and the EU experienced. Canada stringent and strict banking laws have proven that our quality of protecting our banking from getting involved with systemic risks shows why we rank high in stability as we follow the rule of law and we respect it.
Along with government involvement and regulatory cooperation illustrates one of the key components that is inherent in Canadian culture and therefore developing a Canadian RegTech ecosystem could push Canada on becoming a leader in its own right.. Coupled with having innovative location, government funding, talent, strict and secure financial institutions, access, and technology according to Matt Elton, RegTech Canada can be successful initiative to help boost the Canadian economy. The RegTech Innovation centres in Toronto and Vancouver brings in pools of talents and entrepreneurs that are creating solutions and students are already innovating, researching and being educated from the cutting edge, second to none, innovative academia and universities on AI and Cybersecurity technology that could be a niche market in RegTech that Canada can lead. They have started to make headways in AI and Cybersecurity and there is no other location that can carry out this initiative to the extent that a RegTech Canada can. A recent report on Cybersecurity from Deloitte further highlights this.
The current market for Cybersecurity products is estimated at $106 billion. At the same time, the average Canadian data breach costs over $6 million, and analysts project the aggregate global costs of Cybercrime at $2 trillion, with dramatic growth rates. With high enterprise risk but no single company leading the market for enterprise solutions, it’s an attractive sector for a new entrant. Deloitte’s report argues that Canada, and Ontario in particular, should play a leadership role in the global development of this vertical (Lexology).
Entitled “Harnessing the Cybersecurity Opportunity for Growth”, the report was produced by Deloitte LLP (Deloitte), well known for its expertise in this space. It concludes that there are significant benefits for Ontario if the province were to strengthen its cybersecurity innovation ecosystem, with a focus on the financial services industry.
In the World Economic Forum’s Global Risk 2016 report, cybersecurity risk was recognized as one of the top commercial risks along with geopolitics, the environment, and the economy. The Deloitte report makes it clear that although Ontario is well positioned, there are still areas that need to be improved if the province is to establish a leadership position in a globally competitive environment. www.oce-ontario.org/Cybersecurity-Report
For Canada, it will boost the Canadian economy with technology on a global stage. At the same time RegTech Canada will deliver and automate real life industry problems in monitoring and complying with regulatory obligations. In turn, Canada can set the stage to promote these finished products not only within Canada, but globally. Canada is ripe for a change from being known for only natural resources to leader in regulatory technology.