Banks are facing tough times. In an ever-changing digital world, they need to reinvent themselves to respond to customer expectations and rebuild trust in markets. As they are struggling with new regulations, the situation forces them to rethink their strategy.
After pushing for standardized reporting frameworks, regulators are now seeking for more effective regulatory services to secure and enlarge diversity. They are hence willing to open the door to a new generation of actors based on innovative technology. Such “RegTech will go hand in hand with low operational risks and high transaction safety”. In fact, a Market-Place ecosystem will help reducing the systemic risk of uncontrolled internal risk models while delivering a more diverse and resilient system in which incumbents and new entrants compete along with the value chain.
Banks entrust compliance implementation to costly consulting firms. While inadequate tools and obsolete methods are implemented, trade repositories are most of the time a failure. On the other side, major regulators have already implemented with success their Market-Monitoring platform on Cloud and BigData to ensure low Total-Cost-of-Ownership and Time-to-Market.
Experience demonstrates that implementing a Master-Data-Management strategy on world-wide scale for KYC requirements is a never-ending quest, whereas blockchain and AI obtain great results on identity management and fraud detection. Current successes in compliance are based on a more common technology. From Agile Data Lake, Fast Data and Serverless architecture to cloud based Machine Learning services, we will discover what is behind the current success of RegTech leaders and how they implement a Data-Driven Organization to support agility and innovation.
“RegTech” is a massive opportunity to create a vibrant surrounding ecosystem at scale while increasing productivity, lowering transactions cost and improving operational resilience. By moving to “Platform” and “As-a-Service” models, the finance industry will be able to expand revenues with new business models while increasing transparency and customer satisfaction.