As an international financial center, Hong Kong has developed RegTech in recent years to strengthen the efficiency of regulatory supervision. The Hong Kong Monetary Authority Chief Executive Eddie Yue said earlier that this technology is a key element of the government's "FinTech 2025" strategy, hoping to promote Hong Kong as a major hub for the development of compliant technologies and the cultivation of related talents.
The so-called regulatory technology is simply to rely on technological solutions to enable financial institutions to meet compliance requirements while reducing related costs. There are many technological solutions developed by technology start-ups in Hong Kong, which are not necessarily designed for compliance requirements, but are subsequently used in the field of compliance. For example, Fano Labs, which focuses on speech recognition and natural language processing (NLP) technologies, has assisted many banks and even regulators with related technologies to uncover suspicious transactions in voice conversations.
Dr. Miles Wen, CEO of Fano Labs, said that the company used to help companies analyze the dialogue with their customers, including the content of the dialogue and the emotions of the people participating in the dialogue, and then uncover important information. This technology is widely used in the field of compliance.
In recent years, the SFC has been committed to cracking down on scams. Scammers often use the voice messaging function of instant messaging software to deceive victims. "A case may involve 30,000 to 40,000 voice text messages, and there are hundreds of people in a group. It’s hard to know who are the scammers and masterminds. But if the NLP system does it for you, the analysis will be completed overnight.”
It is reported that many local banks have also adopted related technologies to find out whether their employees have illegal sales and avoid huge fines. Dr. Miles Wen revealed that the company will use real bank customer recordings when conducting proof-of-concept (POC) with the bank. In order to avoid leaking customer information, the bank will pre-conceal customer personal information in the recording.
Dr. Albert Lam, chief scientist and chief technology officer of Fano Labs, emphasized that the company's role is only to develop technology and focus on how to improve voice recognition capabilities, but what exactly is compliant or illegal content, "It is up to the customer (that is, the regulatory agency or bank) to configurate (determine) by themselves."