By FINTECH Books Contributor, Pierre Bittner
Banks are facing tough time. In an ever-changing digital world, they need to reinvent themselves to respond to customer expectations in order to rebuild trust in markets. As they are struggling with regulation, the situation forces them to rethink their strategy.
After pushing for standardized reporting framework, regulators are now looking for more effective regulatory services to secure and enlarge diversity. They now open the door to 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 to reduce the systemic risk of uncontrolled internal risk models by delivering a more diverse and resilient system in which incumbents and new entrants compete along the value chain.
Banks entrust compliance implementation to costly consulting firm. While inadequate tools and obsolete methods are implemented, trade repository are most of the time failure. On other side, major regulators have implemented with success their Market-Monitoring platform on Cloud and BigData to ensure low Total-Cost-of-Ownership and Time-to-Market.
Experience demonstrate that implementing a Master-Data-Management strategy on world-wide scale for KYC 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 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 transaction cost and improving operational resilience. By moving to “Platform” and “As-a-Service” model, finance industry will be able to expand revenue with new business models while increasing transparency and customer satisfaction.