Loading page. Please wait.

digital

IMG_5352a-1280x878.jpg

Author: Leen Cuypers

Wednesday, June 28, FinnoLux hosted an event focussed on ‘RegTech Solutions for the Fund Industry’ a collaboration with Enterprise Ireland, and the International RegTech Association.
The purpose of the event was to the opportunity RegTech brings to the fund industry. As ‘digital enablers’, at FinnoLux work, on a daily basis, with clients in the financial sector, defining with them their digital strategy, executing the delivery roadmap, to enable them to take full advantage of the opportunities available.

We believe the use of technology, especially RegTech, has an exceptionally positive impact on the organisation and the industry, when those technologies are applied which strengthen instead the business. When a digital strategy is developed and executed in line with the overall business strategy. For those who are not aware, RegTech is the application of technology to solve challenges relating to regulation, compliance and supervision. RegTech, has however, a value beyond the area of compliance. This is driven by the value proposition of RegTech itself which is not one of disruption but is one of strengthening.

One of the key take-away messages from the event is that RegTech will play an important role in the defining of the future of the Fund Industry in Luxembourg.

It became evident that the future of the industry depends upon the industry’s ability to redefine themselves by applying RegTech. Regulatory Technology is the application of technology to facilitate compliancy with regulations. While one of the values what RegTech brings is to simplify and improve compliance, the wider benefit is far larger and acts as a stimulus to bring automation to the processes.

RegTech’s Value Proposition

In our daily interactions with the Fund sector and more generally with the financial industry, we understand that the ever-increasing regulatory burden and complexity, make it harder to manage costs and human errors are more likely to occur. Margins are under pressure due to competition from new market entrants, especially those in Asia. RegTech allows the companies to avoid spending millions on compliance projects and instead to shift their focus to products and services which can truly differentiate them. By introducing RegTech, companies free-up time and resources to enhance regulation and compliance while strengthening the industry and protecting customers.

By freeing up both people and money, the companies can focus on developing the financial industry of the future. The annual spend of firms in the financial sector on regulatory compliance ranges between 10% and 15% of their annual revenues, with much of the work performed manually. Imagine if a large portion of this could be spend on the business itself.

A second main take away from the event, is that RegTech opens the door to collaboration, as we all know ‘being compliant’ isn’t regarded as a differentiator. We focused specifically on Luxembourg and Ireland as the two main Fund Centres in Europe. It was recognised there is an opportunity to collaborate and to present a strong European front. The openness and willingness from the industry – the Fund industry, as well as the RegTech companies – to work together across borders was shown during a round table discussion. Laurent Marochini, Chair of the ALFI working group on Blockchain and Cryptocurrencies mentioned: ‘Luxembourg and Ireland are competing for the end customer but are not in competition in terms of technology or compliancy. We should find ways or niches to work together. We don’t have the knowledge everywhere, we cannot be the best everywhere. We can exchange with the key people in Ireland. We speak the same language, we are used to speak English and the language of the client. We need to find out how we can progress together.’  From the RegTech companies’ perspective, CEO of Luxembourg-based governance.io Bert Boerman added ‘we are already collaborating across borders as our different solutions are in many cases very complementary and together deliver real solutions to the customer’s many challenges’.

This openness is a major step forward in building a strong European Industry. The different Fund Centres can compete for their end customers, whilst simultaneously building a strong framework in which they can thrive. If we would succeed in doing so, we wouldn’t have to look to the United States to see what they are doing and how they are doing it – regardless the cultural and regulatory differences – but we would be able to build on and tap into the European capabilities, talent and rich innovation history.

Luxembourg’s opportunity

Dr. Subas Roy, global chair of International RegTech Association (IRTA), former Global RegTech Lead at Ernst & Young and reputed as being one of the ‘famous five of RegTech’, while presenting in Luxembourg this week, explained the RegTech industry is rapidly growing, with an estimated size of $20bn by 2020. ‘That is a huge opportunity, at a global scale, for Luxembourg too, to be the leading pioneer of RegTech in the Assets Management and Fund sector, to help create a global centre of excellence, an innovation zone that can help further foster its current 4% economic growth for the years to come!’

One of the International RegTech Association’s core missions is to work with the financial industry, including the Funds sector, to bring the solutions they need. Take for example the six RegTech companies who presented their solutions during the event in Luxembourg this week – these solve real problems that the people in the room actually experience every day. IRTA is furthermore dedicated to build Centres of Excellence on a global scale, where prestigious academics, the industry, regulators and all other stakeholders meet and work together to find solutions that will strengthen the industry.

Matt Elton, CEO of Luxembourg-based FinnoLux, and Vice-chair and co-founder of the IRTA, has, as a true visionary understood RegTech’s powerful value proposition for the Luxembourgish and global Financial Industry. He acknowledges the tremendous opportunity Luxembourg has in strengthening and shaping the very industry in which it is the most successful, by leading the way in the field of RegTech. Matt elaborates, ‘The groundwork which has been laid by Luxembourg’s leading academic institutions and, in particular, SnT’s cutting-edge research in machine learning, artificial intelligence, machine readable regulation, … reinforces Luxembourg’s position, as these technologies are directly applicable to RegTech. It is by the highly collaborative model between academia and the private sector that gives Luxembourg this wonderful opportunity to remain in the lead. Moreover, it is worth stating that the Luxembourg Institute for Science and technology have for several years been developing a capability in RegTech itself. This positions Luxembourg as the ideal place, not only to develop RegTech capabilities but also to apply them to one of our strongest industries. By using the talent and capability which we have and applying it to our industry, we can enable Luxembourg to remain a leading financial centre whilst at the same time becoming one of the world’s leading RegTech hubs’.

FinnoLux is focussed on the creation and execution of digital strategy in the financial sector, of which automation of mid- and back-office are key parts. As a digital enabler, we make digital ‘happen’ for our customers, assisting them in reinvigorating their business and enabling them to reduce costs and inefficiencies and instead focussing on the true differentiators. Our deep understanding of the industry value-chain as well as our true business experience puts us in the perfect position to align your digital strategy with your future perspectives.


DigitalCustomerEngagement.jpg

08/05/2017by Anna Velvet0

Author: Anna Velvet

We have always been told that “customer is king” and it is a reasonable argument not only used in the past but certainly today in our digital world. The opportunity to innovate is becoming vital and companies are understanding that there is a need to be engaged and innovative to be successful with their digital customers. Customer centricity is key – today’s digital consumer wants products and services on their own terms, not those of the supplier. The main ingredients for success is the engagement that you have with your customers and how emerging technology can facilitate their needs as a digital customer.

For most companies, innovation is interpreted by transforming the whole organization which is not necessarily the case. Innovation can exist in small groups or centrally – but in all cases, it must not be isolated from the business.

Changing Business Culture

Another focus companies shouldn’t become too obsessed with is changing the whole culture of the business. Business culture that is forced to change at present is really adapting to how technology will be used to add value to customers needs.

The only way to engage your customers is by creating the right team that are not only close to the customer, but can add input in order to drive innovation. It is important to use the brightest and most talented, in a cross sectional team composed of people who you might not first think to include. People in sales, customer services, marketing are the vital component to help drive motivation.  It is important to involve those in the organisation who are closest to the customer, as well, partners and customers themselves. All theses front office key players along with emerging technology are “key” on capturing your customers needs.

Aligning Innovation with business strategy

Having an alignment between your innovation and business strategy is also another important factor in order to be successful.  It is important to know that Real Innovation is not easy and understanding that point helps you to be prepared for challenges that come along the way. Some companies place a lot of importance in technology but the coolest technology may not necessarily appeal to your customer base.

Therefore, creating game-changing innovation takes hard work, and is not about having short term solutions that satisfy the customer or cool offices with table-tennis tables and beanbags. It is about embracing the needs of your digital customers in the services and products that are important to them.

The Real Definition of Innovation

Innovation does not mean buying someone else’s company who has already innovated.

Companies should try to avoid “easy going”, “copycat” innovation, which isn’t really innovative at all.  Whilst having an app or utilising social media are probably important needs, they are not actually very innovative.

Companies need to be aware that some initiatives will fail or take lengthy time to be executed. The Simon smartphone took 10 years to actually become the Apple iPhone of today. The difference is that Apple captivated the key .. the customers. Their approach added value they understood from their customers that people wanted phones that were compact and easy to use/navigate for their daily use. Apple didn’t change the business culture, they adapted the technology and customer needs to add value for them.

External collaboration can be a huge bonus

Collaboration with external parties such as universities can provide access to cutting edge technologies which are not known within the industry.  Being able to articulate problem statements in a way that researchers can envision solutions is important

Our USP

FinnoLux deals with real experience that produces real results, we have actually executed these strategies within the financial services industry. We have been the bridge between academia and business to create cutting edge solutions. Our team have complimentary, yet very diverse backgrounds, enabling us to “see beyond the obvious”. Our vast experience working within varied business sectors has allowed our strategy to help develop innovation process for any domain or space.

What we do?

Our main purpose is to help you develop your innovation strategy in line with your business strategy.

As well, we help you to define your end goals and the roadmap to achieving the final (holistic) goal. Our strategy is to provide a series of workshops in order for you to take the developed and fragments of your ideas and turn them into real business opportunities and prototypes.

We are the intermediary that acts as the bridge between university/research organisations and the business. Therefore, we will manage collaborations with the academia on your behalf.

Our department will also perform market studies, interview prospective customers, qualify opportunities.

This methodological strategy will create business plans and go to market strategies that will in the end bring a prototype that has your innovative signature stamp.

Executing and Delivering Digital Success

As a partner, we will work with the business to define and execute the innovation strategy, enabling the company to deliver real results, real solutions that customers want to use.  These are not point solutions, defined by a one-time “headline” but part of a holistic strategy to take the business forward in a rapidly changing world.

How do I find out more?

Please contact FinnoLux sales via the contact form on our website, where we will be delighted to discuss how our Innovation Management services could benefit your business.


collaboration3-e1490200755876.jpg

Authors: Leen Cuypers & Anna Velvet

“Train your enterprise to be Digital ready”

The Digital Revolution has changed the world around us and continues to challenge established ways of interaction and doing business. FinnoLux recognizes that there are huge opportunities for those companies who can adapt to the new reality and its Digital customers. FinnoLux have devised a unique programme to help your employees, supervisors, managers and executives set for the Digital world.

As customers’ expectations have changed the ability to understand their needs and to look beyond has become more vital than ever. Customer empathy is considered the key to excellent customer experience and results in increasing loyalty from new as well as existing customers. Companies who deliver an excellent digital customer experience outperform other competitors and experience real success.

Programme

We have created a training programme to develop your organisation, in order to gain understanding of the digital revolution and to be able to identify the opportunities it creates. This training is specifically aimed at the financial sector including financial services, banks, investment fund industry, clearing & settlement, wealth management & private banking, insurance companies and accountants. The programme is modular and can be tailored to your specific situation as Digital presents many different opportunities, depending on where you currently are as a company and where you want to be in the future.

We believe, a holistic approach where different people in an organisation are involved, is the key to realizing a successful Digital strategy. Creating a shared understanding throughout the organisation of the need to digitally transform, and the opportunities resulting from it, a solid base to successfully innovate and establish different initiatives can be established. The Digital Revolution is an opportunity for people to embrace the changes and create solutions.

The programme consists of modules capturing vital topics, each one of them highlighting a specific effect Digital has on the financial industry. The areas covered can include Digital Customers and Banking, Retail Banking, Asset and Wealth Management, Credit Sector, Impact of technology on Banking, RegTech and Regulatory Solutions, PSD2 and API driven services, Crypto-currency in Banking, Blockchain Technology and Distributed Ledger technology.

Upon finishing the programme, the participants will not only understand what a Digital Customer is and how to engage with them, also will they have a clear view of the emerging technologies and their potential. As well, they will develop an understanding of Cybersecurity, cloud computing and data protection issues. We are happy to extend our programme with specific topics related to the scope and nature of your business.

The different modules differentiate between three levels: Executive Level, Senior & Middle Management, Staff.  The modules can be applied to all three levels, the approach and emphasis will be adjusted to the needs and aspirations of the specific audience.

Our differentiator

FinnoLux brings a multidisciplinary team of real industry experts including specialists in banking, wealth management, the development and delivery of innovative products and services, digital transformation, education and service management. This allows us to bring a team in the correct blend to fit the organisation and their objectives. Many years of experience on the crossroad of technology and finance combined with our daily work with customers and our observation of how they work with technology, have provided us with deep insights in the current trends and their impact on the people, processes and business.

Our people take the role as a catalyst during this training programme, by providing the participants with unique insights as well as interactive scenario’s and engaging activities. Our approach goes beyond the transfer of knowledge but aims to stimulate the participants to look beyond the obvious and to enable them to translate change in opportunities.

Digital in Finance has emerged and is transforming the industry as we know it. This programme will equip the organisation with the tools and knowledge necessary in order to excel in this new reality. Creativity and innovation will no longer be an obstacle but an opportunity to engage in meaningful interactions, within the organisation and with customers.

Availability

This training is provided in Europe and in Canada, and can be tailored to the specific characteristics and aspirations of the company.

 


Phone.jpg

03/03/2017by Anna Velvet0

There are many articles defining and dealing with “RegTech” framework and methodology. It is considered the latest tech that will disrupt the financial service industry. On the other hand, it will be the innovation tech that can really provide solutions to financial organizations that deal with risk. As for the digital customers/end users, it will be a system that works to protect us with our financial transactions.

So what does Regtech mean and why should we place any importance on this digital transformation?

Well first, you would need to identify yourself as a digital customer/end user. Second, you would need to know what RegTech is. And thirdly, you would need to know if the RegTech solutions and tools provide you with security for your everyday financial activities and transactions.

Are you a digital customer/user?

Any type of transactions that require you to transfer money, pay a bill, do trades, borrow and lend online or via mobile would qualify you as a digital customer/end user.

What is “RegTech”?

It is the process and system of regulating and keeping the financial industries in compliance through technological tools and solutions.

How does RegTech fit into your life?

After the effects of the 2008 financial crisis, RegTech is becoming the surety that digital customers are looking to in order to building confidence in the financial industries that deal with their money.

What are the components and why should we care?

There are several factors that point out the importance of having RegTech for digital customers and end users.

  1. Data protection
  2. Keeping up-to-date with technology (speed)
  3. Protection from misconduct externally and internally
  4. Providing easier ways of access and doing transactions without losing our privacy.

Every year, new regulations for financial institutions are imposed which are very costly and have lengthy processes. Coupled with digital transformations coming into the fold, these institutions still struggle to deal with the main problems of our digital users of today (i.e. data protection, hacking, and money laundering).

What RegTech does is allows businesses to innovate and create digital tools and solutions to automate, monitor and compel financial organizations to be in compliance with regulatory directives for the protection of our data.

Recently in the news, headlines over data breaches and hacking at financial institutions and firms have been the focus on making sure there are stricter and tighter rules in order to prevent identity theft and money laundering activities. In the EU and the US, payments, trading, and money transferring are expected to held to highest standards of compliance; meaning daily and live monitoring and reporting of activities are imposed on these financial organizations.

Currently there are major players that have innovated platforms to make it easier to digitally monitor and report these activities to the appropriate authorities. The Financial Conduct Authority (FCA) and Consumer Protection Acts include guidelines and rules dealing with the operations and health of the financial institutions. Such guidelines include the Basel Accords, the EU Solvency Directive, MiFids and Emir and the Dodd–Frank Act (US).

As well, under the PSD2 regulations in the EU, strong identity authentication is a requirement for for financial organizations that deal with digital customers/end users in payment and remittance services. There is new and upcoming identity management software that can identify and authenticate you as the real user in order to help minimize the risk of ID fraud and misconduct.

In addition, through advanced biometric authentication, you will no longer need a password to identify who you are as your mobile will identify the “live” you. For the EU, it provides a safer alternative as opposed to depending on passwords. Because of RegTech initiatives and solutions, transactions can be done faster and you will be better protected and far more secured.

Another example of why RegTech is important for digital customers is that it facilities transactions that can be far reaching, rapid, and inclusive for global digital communities. Whether you are business person, fund or asset manager that handles a lot of clients’ data and funds, you expect to trust that the organizations you are transferring money to are in compliance, are fast, and up to date with the latest technology that can make your transactions run smoothly, no matter which country you are in. You would like to ensure that your data can be saved in a “safe” such as the “blockchain” in order to protect your private information and keep from the risk of hackers.

Digital devices are becoming the norm for digital consumers and with Regtech solutions and tools, they can help solve the issues of risks that could affect us as end users.

In conclusion, RegTech tools and solutions play a vital role in helping financial organizations monitor and report their activities. It can also provide us with tools that help identify who we are and safeguard our data. As well, it can help make our transactions quicker while not compromising our privacy. As a digital user, it is important for me to trust the financial organization that I give my money to and that they are following the rules to protect and ensure my data privacy. RegTech is the ecosystem that is able to solve financial organization risk problems in this world of digital transformation; a solution that we can all agree is greatly needed.