Regtech demonstration shows future of compliance
The Australian Securities and Investments Commission (ASIC) hosted it’s Regtech Monitoring Financial Promotions symposium last week, to demonstrate how the technology can be used to determine the compliance of financial promotion material.
They were tested by providing regtech solutions to monitor, identify and analyse the promotional material relating to banking, credit and insurance.
Potential indicators of risk included high-risk promotional words like ‘lowest’, ‘cheapest’, ‘best’, ‘guaranteed’; inconsistent or unclear information; or missing legislative requirements.
Demonstrations were performed by Cognitive View, Law of the Jungle, Red Marker and Allens law firm, Sintelix, and Visteo.
Shajid Mohammad, data scientist from Cognitive View, said this form of technology could be used to analyse vast amounts of data.
“What we're actually doing is extracting all advertisements from the web and then we're just processing all of this using our core artificial intelligence (AI) techniques, and then checking whether these obligations have been made or not,” Mohammad said.
Alvin Leung, manager of product development at Law of the Jungle, said the increased amount of marketing communications had made the old process of manually reading and looking at every piece of information no longer feasible.
“Technology is needed to make it easier to make sure that materials are accurate and compliant, and make sure the marketer is empowered to make the right call,” said Leung.
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