The APAC Regulatory Landscape: 5 Key Trends to Watch

Regulatory transformation across the Asia-Pacific region continues apace, driven by multi-year programs aimed at deepening data collection and modernizing reporting platforms. At the same time, fast-moving regulatory demands have pushed financial institutions to adapt their strategic programs while seeking operational efficiency.

As institutions refine their approaches, changes in the regulatory landscape call for vigilance, with new policies and technological advancements reshaping compliance requirements. With these dynamics in mind, here’s a look at the key regulatory trends influencing APAC’s financial landscape and what institutions must do to stay ahead.

In recent years, APAC regulators have led the global shift toward a more data-driven compliance landscape, spurred by the rollout of granular reporting programs across the region. Key initiatives include:

• The Australian Prudential Regulation Authority (APRA) launching the Comprehensive Data Collection program, a five-year initiative to enhance data collection through APRA Connect, its new reporting system.
• The Bank of Thailand (BOT) initiating the Regulatory Data Transformation program to replace form-based reporting with a more streamlined, data-centric approach.
• The Hong Kong Monetary Authority (HKMA) accepting submissions for four data catalogs under its Granular Data Reporting (GDR) program, with plans to expand the collection in the coming years.
• The Monetary Authority of Singapore (MAS) adopting a hybrid reporting strategy, integrating granular data points with aggregated figures, as seen in the consolidation of three reports into the Top Borrowers Group Survey.
• The Bangko Sentral ng Pilipinas (BSP) launching pilot projects to test report collection through XML-based submissions, signaling a move toward more structured and automated reporting.

Programs such as these mark a fundamental shift in regulatory expectations, requiring institutions to enhance their data management and reporting capabilities to stay compliant. They also lay the groundwork for the increased adoption of RegTech solutions. 

Within the region, Australia, Hong Kong and Singapore continue to position themselves as leaders in RegTech adoption. For example, the Monetary Authority of Singapore (MAS) allocated financial grants to encourage institutions to integrate RegTech solutions. Elsewhere, the Hong Kong Monetary Authority (HKMA) promoted RegTech adoption through its Fintech 2025 strategy, calling on the industry to leverage innovative technologies as part of broader digitalization efforts. These are several instances of a broader series of regional trends.

Digital banking accelerates RegTech adoption

The rapid approval of digital banking licenses in fast-growing economies like Malaysia and the Philippines has intensified interest in RegTech solutions. With new digital banks facing stringent reporting requirements, institutions are turning to RegTech innovations to streamline compliance and support regulatory alignment.

Cloud adoption transforms compliance

Driven by stricter regulations and shorter reporting timelines, financial institutions are accelerating their cloud adoption strategies. Many organizations have already begun deploying RegTech solutions via SaaS models, leveraging the cloud for greater scalability and efficiency.

As regulatory requirements continue to evolve, cloud-based compliance infrastructures will become an essential component of modern financial operations for APAC institutions.

Uptick in regulatory automation

Over the past several years, regulators across APAC—including APRA, HKMA, MAS, and RBI—have introduced transformation programs that drive automation in financial institutions. These initiatives are paving the way for more efficient compliance processes, enabling banks to optimize reporting and provide richer, faster insights.

As more regulators in the region move toward similar digital collection platforms, financial institutions should evaluate their systems to ensure they are ready for these regulatory changes.

Final implementation of Basel Reforms

After lengthy consultation, major APAC markets such as Australia, Hong Kong, Malaysia, and Singapore have finalized Basel III-aligned reforms, incorporating localized regulatory requirements.

With implementation timelines spanning the next few years, financial institutions would be well advised to focus on advancing their compliance frameworks, encouraging alignment with Basel principles while meeting jurisdiction-specific expectations.

Data collection integration with regulators

Regulators are continuously enhancing their technology stacks, transitioning toward much closer data transmission frameworks between themselves and financial institutions.

This shift is gradually replacing traditional form-based reporting, fostering a more dynamic and data-driven regulatory environment. Institutions should prepare for further automation and integration as regulatory systems evolve.

All this activity is creating a positive feedback loop. As demand for granular regulatory data grows, financial institutions are increasingly seeking RegTech solutions to streamline their reporting and compliance. At the same time, enhanced RegTech capabilities enable institutions to capture larger volumes of data more efficiently, further reinforcing the need for RegTech adoption.

In this environment, financial institutions must take a strategic approach to RegTech, leveraging automation, cloud-based compliance and data integration to stay ahead of changes in regulatory expectations. By proactively investing in technology-driven compliance solutions, institutions can remain agile and competitive in these dynamic times.