RegTech workshop: a bright Fintech friday

Fintech 9 April 2019

RegTech workshop - Big Data Analytics

The coding session of modefinance on AI applied to credit risk management

Fin-Tech HO2020: the project which connects all the European Fintech players, companies and regulators, landed in Milan.

“The FIN-TECH project, under the EU's Horizon2020 funding scheme, aims to create a European training programme, aimed at providing shared risk management solutions that automatize compliance of Fintech companies (RegTech) and, at the same time, increases the efficiency of supervisory activities (SupTech).”

Supervised by the University of Pavia, thanks to the great effort of professor Paolo Giudici and his team, the project’s main goal is to develop a knowledge exchange program to enhance the European FinTech ecosystem, delivering uniform procedures for Fintech compliance in risk management, dynamically updated with emerging state-of-the-art technologies, best practice business models and international regulatory developments.

Last Friday, modefinance set up the first RegTech workshop on Big Data Analytics in peer-to-peer landing and credit risk management, where one of they key points was showing how innovation and technology are happening faster every day, thanks to a collaborative and interconnected environment. Universities, companies and regulators, are now working very closely, including people with different backgrounds and fields of study.

Fintech is one of the fastest and rapidly changing industries and involves existing companies (traditional finance institutions), new entities and emerging technologies (Data Science, Machine Learning, AI), with a consequent need of rules. This is what we showed, together with researchers from the University of Pavia and ZHAW – Zurich University: how to apply the most advanced data science and analytics technologies in credit risk management and peer-to-peer lending in order to build high predictive rating models.

As this kind of rating modellling requires a strict regulatory compliance, we invited a CONSOB representative as a speaker, to show how institutions and regulators are able to contribute to the industry growth, and how they are involved in the innovation process in Fintech.

Not just theory itself: a hands-on coding session during the afternoon let the participants test the models themselves. A great opportunity of networking and discussion between academics and industry partners, appreciated with unexpected energy and interest by all the participants. All the speeches focused on the importance of data, its value, the tech features and the models chosen, but everyone – from regulators to Fintechs – stressed particularly on the transparency and explainability of technology as a fundamental part for being trustworthy.

We want to thank all the attendees, the partners and the institutions for offering their support to such an amazing project.