The New York Department of Financial Services (NYDFS) announced the techsprint in a press release, describing it as an initiative by regulators and industry stakeholders to work towards a common goal of digital regulatory reporting. The financial regulator noted that this effort comes in the context of global financial regulators’ trend to employ techsprints as a mechanism to prototype technology solutions to key supervisory problems rapidly. The techsprint’s first area of focus will be crypto firms, the NYDFS revealed.
Financial regulators aim to foster a safer marketplace for consumers.
The Superintendent of Financial Services Linda Lacewell, remarked that regulators need access to more immediate information about the financial and operational conditions of the firms they oversee in a rapidly becoming digital world. The ongoing global pandemic has made this more apparent as it delayed reporting for most firms. Regulators also had to take up digital examinations of the firms they oversee to abide by the social distancing rules.
Lacewell further stated that with this first-ever techsprint series, the Department is making progress towards automating the reporting of financial and operational data by our regulated entities, enhancing collaboration between the Department and industry, and helping to foster a safer marketplace for the consumers who depend on it.”
“This will be the first of many techsprints.”
The New York financial regulator will partner with the Alliance for Innovative Regulation and the Conference of State Bank Supervisors on the initiative. This will be the first of many techsprints, the financial regulator revealed, with subsequent initiatives set to focus on other nonbank entities. The techsprint is expected to bring together fintech and digital currency professionals, their regulators, and regtech experts. They will work on solutions relating to process improvements and a digital reporting mechanism.
