The Singapore FinTech Association (SFA) and KPMG in Singapore have unveiled a report titled “Strategic Cloud Adoption in Financial Services: Governing Risk & Scaling RegTech,” which explores the adoption of cloud-based regulatory technology (RegTech) by financial institutions in Singapore and the Asia-Pacific region. The report identifies governance as a critical factor in overcoming challenges to wider adoption.
The report, which includes insights from financial institutions, RegTech providers, cloud service providers, system integrators, and the Monetary Authority of Singapore (MAS), addresses cloud security concerns and proposes a framework for adopting RegTech without compromising security and risk management. It highlights that cloud infrastructure is essential for next-generation RegTech and AI-enabled compliance, with 77% of surveyed RegTechs favouring cloud-native deployment.
Despite the technological readiness, the report finds that financial institutions face challenges in translating regulatory expectations into practice and maintaining cloud-native compliance systems. Accountability remains with financial institutions, even as outsourcing and ecosystem complexity increase. The MAS has clarified that robust governance and risk management are necessary for cloud adoption, allowing flexibility in cloud arrangements.
The report also notes that adoption challenges stem more from governance and capability issues than technology limitations. It calls for industry standardisation and reusable assurance artefacts to accelerate adoption. Future success will depend on balancing innovation with governance, resilience, privacy, and AI risk management, as cloud- and AI-enabled RegTech can significantly reduce operational burdens.
