Yesterday was an important day for us at Aptus.AI. A day that represents a fundamental step in the revolution in the banking regulatory system, both national, in the first instance, and later in Europe. Yesterday, in fact, in the presence, among others, of Ignazio Visco (BanbkIT Governor) and Alessandra Perrazzelli (BankIT Deputy Director General), BankIT officially announced the presence of Aptus.AI's machine readable regulations among the "first projects admitted to the support of Milano Hub, the innovation center with which the Bank of Italy intends to give concrete support to the digital evolution of the financial market ”- as communicated by the Institute. Among the more than 40 participating projects, Aptus.AI's proprietary AI technology is one of the 10 that will benefit from this great opportunity. The BankIT commission of the 2021 Call for Proposals, focused on the "contribution of Artificial Intelligence to the improvement of the offer of banking, financial and payment services", thus recognized the validity of the project aimed to the drafting of banking regulations in a machine readable format. And this is precisely the core of Aptus.AI's proprietary solution. A technology that represents the basis for enabling optimized services to end users, but mostly for providing an innovation tool for the enactment of documents in a machine readable format by the Regulator.
In this sense, BankIT is aligned with the European Banking Authority (EBA) and with he European Commission, which - as we have already highlighted - have already addressed RegTech as the future of the European banking system, and in particular in relation to machine readable regulations - another issue that we have been following at Aptus.AI for some time. An issue that we try to resume with two important quotes. "by 2024, information to be publicly released under EU financial services legislation should be disclosed in standardized and machine-readable formats" - wrote the EC at the end of 2020 (source: European Commission). About a year later, the European Banking Authority wrote these lines: "the EBA will continue to make advances in RegTech on the supervisory side such as making legislation machine-readable or similar", in order to "provide instructions for reporting requirements and other data collections in machine-readable format" (source: European Banking Authority).
Regulatory Technology therefore represents the future of the financial world, as also confirmed by the work of public authorities throughout the European Union to encourage the application of these technologies in the banking sector. These include the so-called Innovation Facilitators, or the Regulatory Sandboxes and the Innovation Hubs, which we have already talked about. The Fintech Milano Hub also falls into this category and represents a fundamental starting point for our project, above all thanks to the collaboration with Bank of Italy. The skills offered by the Fintech Milano Hub will be essential to understand the expectations of those who draft the regulatory texts, as well as the needs of the end users of the standard. In this way, it will be possible to consider the needs of Artificial Intelligence analysis on the regulatory text being drafted. This context will make it possible to quickly verify both the effectiveness of the Artificial Intelligence algorithms exploited, also laying solid foundations for the correct evolution of the solution in the European context. Using the words of the Bank of Italy communication, "Milano Hub represents an important place to dialogue with the market and support the development of innovative solutions based on approaches that adequately take into account the need to balance opportunities and risks" thanks to "groups of experts who will support the development of each of the selected projects". It would now be appropriate to present the elements of innovation and the benefits that our project of issuing and using machine readable financial regulations would guarantee, but we will do so on another occasion. We therefore refer you to the next blog post to learn more about our proprietary Artificial Intelligence technology. If you want to know more right now, don't hesitate to contact us!