The inexorable advance of new technologies; artificial intelligence (AI), machine learning (ML), big data and cloud computing are transforming financial institutions and markets. Machine learning in particular, is rapidly gaining traction in the world of
model risk management, where the increased number of models to be managed, requires a consolidation of effort across the entire model landscape.
Despite infrastructure challenges and reservations as to the transparency of algorithms, these technologies are being used for model risk management in order to alleviate the overhead of regulatory compliance; a key example whereby RegTech can help banks
to achieve compliance in the smartest way.
Disruptive technologies are still at an early stage of adoption by most financial…
