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Matt Elton

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26/01/2018by Matt Elton

Authors: Leen Cuypers & Matt Elton

Two recent conversations we had about the success factors of RegTech, both from very different angles (one in advising an investor, the second one an interview on the RegTech boom) got us thinking deeper about the topic of what to look for when considering RegTech investment and prompted us to share our thoughts in this blogpost.

In times where new regulations and the threat of fines for non-compliance seem to be coming from everywhere, the potential for RegTech is real, and it is likely it will become much bigger than FinTech. At the same time, the space has become so crowded, one can speak about a RegTech minefield, where it’s hard to distinguish the high potential start-ups from the less interesting ones.  At the start of the RegTech investment boom 12 months ago, a lot of funding was focussed towards reporting solutions. The space has heated up with an increasing variety of solutions out there, and many solutions branding themselves as “RegTech” to take advantage of the boom, thereby clouding a clear view on the real opportunities. As one of the investors in our network described it, “investing (in early stage startups) is like throwing darts at a dartboard”. To help you as an investor at better pointing your dart to the RegTech dartboard, here’s some observations from our side on the factors for RegTech success. These are especially applicable to start-ups, less so to scale-ups who have, hopefully, already proven the value the provide and the interest they have generated.

Show something different

As RegTech has become a buzzword, a lot of Tech companies are focussing on the low-hanging fruits. They understand some of the challenges of the industry, and dedicate their focus on the less complex ones. Currently, we see a huge number of companies working on solutions for identity verification, AML/KYC, automated onboarding, of primarily individual customers. Without renouncing the technical quality of these solutions, a profound analysis is needed to understand what differentiates one solution from the others on the market and what are the chances for this one to be successful and leave the others behind. The majority of these solutions focus on identifying individuals, whilst the industry knows the real headaches come from the identification of beneficial owners behind corporate structures, like, for example institutional investors. Our recent meeting with a solution provider especially targeting the identification of beneficial owners across multiple jurisdictions, shows there are entrepreneurs who are able to step away from the big crowds’ focus and are able to understand the real challenges of the industry.

Understand the value chain

This brings us seamlessly to the second point: understand the value chain, and the challenges beyond the obvious. Get to know those challenges that have absolute priority, where companies are willing to dedicate time, effort and money on – after all, as financial institutions face many challenges, of which some or more pressing than others.

During a recent conversation with a Compliance Officer of a large international institution, he described the situation they find themselves in – in fact, they now have so many point solutions in place, each dedicated to one piece of regulation or regulatory requirement, that what they are looking for now are ways to reduce this huge number of point solutions, lacking overview or structure, into “one, or maybe two solutions”. There is a clear need, therefore, for holistic solutions, which provide more challenges in developing them, but focusing on the true needs of the industry. Those start-ups which committed time and effort to conduct a profound market research in order to understand the value chain are able to address the problem and not the symptom; increasing the chances for success greatly.

RegTech 2.0

RegTech 1.0 has made place for RegTech 2.0, where Tech entrepreneurs are looking for ways to strengthen the industry beyond the simple automation of regulatory processes. The financial industry has suffered serious reputational damage through the 2008 crisis and other scandals, all based on the misconduct of some individuals within the industry. Developing a technical solution to protect the firm and at the same time strengthen the wider industry, might be one of the golden eggs investors are looking for. RegTech’s value proposition of strengthening instead of disrupting, enables the technology focused on regulation, compliance and supervision to transform the way in which traditional industries like the financial one, function and enable the existing companies to remain relevant. Those start-ups understanding the bigger picture and using this proposition to the fullest are likely to be very successful.

Conclusion

The RegTech space is moving so rapidly that, like the FinTech boom before it, it is becoming more and more important to look at the real long-term value that solutions provide to the market – we are not only talking about understanding customer needs, but a process that goes much deeper. Unquestionably there are no shortages of imaginative ideas or initiatives, but are they targeted at releasing value? To determine the real value of a solution requires a deep understanding of the value chain and the inner workings of the business.

About the Authors

Leen Cuypers: Leen’s ability to see creative solutions, coupled with her analytical skills and drive to get things done, helps her investigate, define, and solve business challenges for the 21st century. Focussed on RegTech for emerging economies she delivers credibility and trust.

Matt Elton: Matt is one of the world’s leading RegTech strategists. Working with governments, regulators, and industry, he shapes the future. Matt has delivered real results for financial services organisations, and the public sector, throughout Europe, and in Canada.

 


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12/01/2018by Matt Elton

Award winning Swiss firm Apiax will present “Cross-Border Compliance Digitally Mastered” in Luxembourg on 18 January.

With legal and compliance costs at historical highs and facing a world where products and services become increasingly digital, Apiax offer a solution for Wealth Management and Private Banking that increases efficiency and certainty by transforming complex financial regulations into easy-to-use digital compliance rules. Apiax’s technology allows to work with constantly up-to-date and verified digital rules that are managed in a powerful platform and can be integrated directly into banking processes through an advanced API. The user-friendly App puts the power of this digital regulatory repository directly into the hands of client-facing employees and allows them to receive binary answers on complex regulatory matters on the fly and with the highest possible convenience.

Apiax Co-founder, Ralf Huber, has over 16 years of legal and compliance experience within the financial industry and holds a Master of Law from the University of Zurich. Starting his compliance career at Zürcher Kantonalbank, Ralf went on to perform a variety of different legal and compliance roles at Credit Suisse between 2005 and 2016, both in Switzerland and abroad. In his last role at Credit Suisse, Ralf managed a lawyer team covering all legal and compliance tasks for the investment services and products, asset management and mutual funds business in Switzerland. Ralf has always been passionate about standardisation and leveraging technology to simplify the demands of modern legal and compliance work. He is a founding member of the International RegTech Association (IRTA) and president of the IRTA’s Swiss chapter.

The event, RegTech Solutions for Wealth Management and Private Banking is a part of the “RegTech for Luxembourg” series, and focusses on the opportunities brought by RegTech for the Wealth Management & Private Banking Industry. The RegTech for Luxembourg series is brought by FinnoLux in association with the International RegTech Association (IRTA). We focus on real technologies than can be deployed now.

Come and join us for an exciting and thought-provoking breakfast-briefing in which we will show you how to create revenue from regulation and compliance.

Entry is free, however as places are limited, please register at

https://finnolux-regtech-wealth-management.eventbrite.com

The event will start at 8:30 on 18 January, at Ca(fé)sino, 41 rue Notre Dame, 2240 Luxembourg City


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08/01/2018by Matt Elton

Singapore-based Founder and CEO of RegPac Revolution, Mona Zoet LLM, CAMS, will deliver the keynote at RegTech Solutions for Wealth Management and Private Banking in Luxembourg city on the morning of 18 January.

Mona has worked for more than 15 years around the globe in top tier Financial Institutions, including JP Morgan (Hong Kong), State Street (Boston, USA), Lloyds Banking Group (NYC, USA) and Bank of America Merrill Lynch (Singapore), and has seen most of the banking landscape from a Local, Regional and International perspective, before setting up her own  a boutique regulatory compliance & risk management consultancy firm, ThinkMola in Singapore.

During her banking years, she became acutely aware of the Regulatory, Operational and Risk Management pain points faced by banks and other Financial Institutions alike and concluded that many of the same problems could be eliminated more effectively with the use of Regulation Technology (RegTech).

Mona is an Executive Board Member, Southeast Asia Lead and Singapore Chapter President of the International RegTech Association (IRTA) which exists to ease andaccelerate the evolution of the RegTech industry, by facilitating integration, collaboration and innovation of all stakeholders, within the Financial Services sector.

The event, RegTech Solutions for Wealth Management and Private Banking is a part of the “RegTech for Luxembourg” series, and focusses on the opportunities brought by RegTech for the Wealth Management & Private Banking Industry. The RegTech for Luxembourg series is brought by FinnoLux in association with the International RegTech Association (IRTA). We focus on real technologies than can be deployed now.

Come and join us for an exciting and thought-provoking breakfast-briefing in which we will show you how to create revenue from regulation and compliance.

Entry is free, however as places are limited, please register at

https://finnolux-regtech-wealth-management.eventbrite.com

The event will start at 8:30 on 18 January, at Ca(fé)sino, 41 rue Notre Dame, 2240 Luxembourg City


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09/11/2017by Matt Elton

FinnoLux is delighted to announce the first of a series of RegTech events, specifically focussed on the Luxembourg Financial Centre. The first in the series will take place on Thursday 23 November, and will focus on the challenges in managing and maintaining AML, KYC, FACTA/CRS, sanctions screening, PEP checks for new and existing individual and institutional clients.

See how RegTech solutions can facilitate, improve and continuously monitor your processes of customer on-boarding, ongoing due diligence and customer off-boarding.

When? Thursday 23 November 2017 from 8 am
Where? Hotel Mélia, Kirchberg

Please register to reserve your place at:

https://finnolux-regtech-customerlifecyclemanagement.eventbrite.com

Agenda

8am: Registrations & Welcome Coffee
8.30am: Welcome Address
8.40am: Keynote Speech from former regulator
9.30am: Presentation of 4 RegTech solutions
11am: Networking Coffee

Presentations of RegTech Solutions:

  • KYCC
  • Kompli Global
  • Taina Tech
  • Keesing Technologies

Event Series

After the successful event on Irish RegTech Solutions, FinnoLux has put together an interesting event program for 2017-2018, making RegTech tangible to the Luxembourg Financial Centre.

The first two events will focus on Customer Lifecycle Management (on 23d November 2017) and Data Management in the Fund Industry (12 December 2017). For 2018, we plan one with a specific focus on RegTech for the Wealth Management Industry in Q1 and RegTech solutions for the Insurance Sector in the second quarter of 2018.

The aim of these events is to create value for the industry by focussing on the benefits the application of Regulatory Technology can bring and by making the opportunities tangible. We bring targeted events, focussed on key decision makers from the industry, bringing the best of solutions to the stage.

The first in the series will focus on Customer Lifecycle Management and is aimed at showing attendees how RegTech solutions can facilitate, improve and continuously monitor processes of customer on-boarding, ongoing due diligence and customer off-boarding. Our keynote speaker will set the stage and provide more insight in the topic and the specific challenges the industry faces. .

After the keynote speaker has set the stage, 4 companies will dig deeper in the problems they solve and their experiences in the sector.


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08/06/2017by Matt Elton0

We would like to invite you to ‘RegTech Solutions for the Funds Industry to be held on 28 June 2017 at Hotel Le Royal, Luxembourg.

This event is hosted by FinnoLux, Enterprise Ireland and the International RegTech Association (IRTA) with support from the Irish Embassy in Luxembourg, and is the first dedicated presentation of RegTech solutions for the Funds Industry in Luxembourg.

Starting with a business breakfast, the event will take place in the morning of Wednesday, 28 June, at the Hotel Le Royal, 12 Boulevard Royal, Luxembourg, and will show a first-hand picture of RegTech solutions and explore possible partnership opportunities for successful digital transition.

The seminar will feature a panel discussion with prominent speakers from the RegTech industry.

Attendance is free of charge, however as spaces are limited, registration is mandatory, register here:
https://www.eventbrite.com/e/regtech-solutions-for-the-fund-industry-tickets-35206928872

Agenda:

08:00                    Breakfast

9:00-9:15             Welcome address H.E. Peadar Carpenter, Irish Ambassador to Luxembourg

9:15-9:40             Keynote Subas Roy, Global Chair International RegTech Association: The opportunity RegTech brings to the Fund Industry to increase efficiency and reduce regulatory risk.

9:40-10:30          Showcase of RegTech Solutions for the Funds Industry

10:30-11:20        Panel Discussion moderated by Paul Barreveld (Enterprise Ireland)
Laurent Marochini (Chairman ALFI Blockchain & Cryptocurrency Working Group)
Matt Elton (Vice chair IRTA)
Bert Boerman (CEO governance.io, winner of the 2016 FinTech Lion Awards)
– Additional speaker tbc

11:30                     Networking

Companies presenting their solutions include:

Gecko Governance Blockchain technology to manage regulatory and governance compliancy
FundRecs  Fund reconciliation software
AQMetrics Analytics and regulatory reporting & risk monitoring
Risk System Real time Risk engine to calculate various risk exposures
Corlytics Regulatory Risk Intelligence
FundCalcs Complete Automation of back office calculations and data flows

We look forward to seeing you at the event!


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08/05/2017by Matt Elton0

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.


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09/03/2017by Matt Elton0

Authors: Anna Velvet & Endri Bahja

What is the Global Scan?

Global Scan is a service evaluation tool that measures how ready your business is in order to enter into the global market with success. Our company FinnoLux provides this assessment which looks at several factors from a series of questions.  Depending on what you are looking for and with the advice of the global assessor  you may choose to have a question period of a 1 hour call with the CEO, a detailed interview session(s) with the top management team, or/and an onsite evaluation and interview of the functional staff from different departments of the company. These questions focus first on the company’s business in financial, legal, social, and political factors which normally bring challenges for a startup to enter or even grow in the market internationally.

Other set of questions focus strongly on company’s innovation dimensions in order to find, assess and improve their gaps and better evaluate their opportunities. The last section of questions are the famous Thiel’s 7 Questions that in our view every company (no matter what size) should try to answer, before they plan to improve or create a product or service in their enterprise. Below is a quick snapshot of some of the sections of the assessment.

Why is a Global Scan necessary? 

Most startups and/or established firms who are successful in their local economy tend to interpret what works for them locally and assume it can be adapted to global markets. The assumption that all business cultures work the same has caused some companies’ failures and has caused others to struggle to meet targeted profits due to lack of understanding their market.

If the targeted market is not necessarily ready for your service, other factors such as culture, politics and technology could be further difficulties companies could face. This report looks into these scenarios. A common situation that could happen is that companies that are very successful in their local regions tend to operate in ways that are familiar to them and therefore may overlook some business tactics used in another country. Hence a having this global assessment would be the ideal approach in tackling these issues.

The Entrepreneur.com website also points out some elements that explain why startups fail which include the following; the actual idea is not productive, ineffective planning and leadership, lack of or insufficient finance, issues with product launch, marketing, and sales. All these elements may contribute to the complexity of growing your business, especially when entering unknown territories globally.

Fintech companies are no exception, despite the boom in the services and some of the success stories that derived from this new ecosystem. Some unknown territories can experience these similar issues due to cultural and legal requirements of other EU member states.

The assessment highlights several observations that are put into a report to understand what is necessary to go forward in your business globally.

Global Scan Assessor Endri Bahja, who has been conducting these assessments, has given several examples of what types of challenges have affected the companies that tried to internationalized in the EU.

An  example he gave was about a financial service company from Eastern Europe that  wanted to expand their financial business into Italy to provide their services to a growing number fellow residents who emigrated there. They struggled to reach the clients as the obstacles of entering the market on their own was not gaining traction and the only way to penetrate this market was through forming partnerships with financial institutions. The assessment was able to pinpoint what they were lacking and this in term helped them develop better strategies with the local financial institutions. Through post assessment results, they understood that these suggestions would have helped cut the expense cost and the process of entering the market quickly.

Once the essential issues are identified, these firms can find out what key strategic formula they lack in order to prepare for entry into a new country market. Those who want to grow and succeed globally can benefit from this kind of assessment.

As a cultural language coach, I have personally seen departments in multi-international companies fail to increase their productivity due to low-level language skills in English and a lack of understanding how to do business in a culture that may do things differently. For example, having lots of meetings is one way of being productive in one country while another country might feel that it’s unproductive. Understanding your market and business culture is one of the leading factors of being successful internationally.

Global Scan Assessment- The Tool that Benefits Investors and VCs

Time is money; especially for startups and established companies. Are your investments competitive on a global level?

To the VCs and investors, this tool can assess the future growth of your investments and monitor your business’ strategies in the financial eco space. As you don’t have time to monitor and forecast your investments in these startups, a report can definitely help you diagnose the growth and/or establish potential for future expansion.

FinnoLux is an enabler that assists companies in transforming their own ideas in order to help them fulfill their objectives. At the same time, we aid companies in creating real-life industry solutions. The assessment is conducted by an innovation and export management  expert (of 10 years) who currently works in collaboration with the EU’s innovation and evaluation of SME and MSMEs. From a series of questions and responses given in a digital report, we will be able to analyze what the company strengths and weaknesses are to becoming successful globally.

Several questions that you should ask yourself when expanding and entering a new market are: Am I ready and do I understand the market? Are my finances in order? What is the political/social implications of my product/services? If you are asking these questions or considering some of these questions, then a Global Scan is the tool to determine your strategy and success.

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 the Global Scan could benefit your business.


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06/03/2017by Matt Elton0

RegTech is the automation and delivery of regulatory obligations in compliance and monitoring tools for the finance, wealth, insurance, telecommunication space. A RegTech Canada innovation centre is the location and facility that will create and support labs, training programs and help bring in early stage Canadian talents in order to create services and product solutions which will help meet the requirements of businesses and regulators. In addition, it will be the bridge that develops confidence and closer communal relation with the Canadian digital consumers. As the Canadian digital customers become more tech-savy with their transactional activities they look for our industry sectors to protect their data and against fraud. By having updated automated tools and solutions that follow the regulatory requirements Canadians can start to feel at ease and invest more in these financial, insurance and wealth sectors that provide service.

The Canadian banking environment have developed a global reputation of having stable and secured banks that avoided a major meltdown from the 2008 financial crisis like other countries such as the US and the EU experienced.  Canada stringent and strict banking laws have proven that our quality of protecting our banking from getting involved with systemic risks shows why we rank high in stability as we follow the rule of law and we respect it.

Along with government involvement and regulatory cooperation illustrates one of the key components that is inherent in Canadian culture and therefore developing a Canadian RegTech ecosystem could push Canada on becoming a leader in its own right..  Coupled with having innovative location, government funding, talent, strict and secure financial institutions, access, and technology according to Matt Elton, RegTech Canada can be successful initiative to help boost the Canadian economy. The RegTech Innovation centres in Toronto and Vancouver brings in pools of talents and entrepreneurs that are creating solutions and students are already innovating, researching and being educated from the cutting edge, second to none, innovative academia and universities on AI and Cybersecurity technology that could be a niche market in RegTech that Canada can lead. They have started to make headways in AI and Cybersecurity and there is no other location that can carry out this initiative to the extent that a RegTech Canada can. A recent report on Cybersecurity from Deloitte further highlights this.

The current market for Cybersecurity products is estimated at $106 billion. At the same time, the average Canadian data breach costs over $6 million, and analysts project the aggregate global costs of Cybercrime at $2 trillion, with dramatic growth rates. With high enterprise risk but no single company leading the market for enterprise solutions, it’s an attractive sector for a new entrant. Deloitte’s report argues that Canada, and Ontario in particular, should play a leadership role in the global development of this vertical (Lexology).

Entitled “Harnessing the Cybersecurity Opportunity for Growth”, the report was produced by Deloitte LLP (Deloitte), well known for its expertise in this space.  It concludes that there are significant benefits for Ontario if the province were to strengthen its cybersecurity innovation ecosystem, with a focus on the financial services industry.

In the World Economic Forum’s Global Risk 2016 report, cybersecurity risk was recognized as one of the top commercial risks along with geopolitics, the environment, and the economy. The Deloitte report makes it clear that although Ontario is well positioned, there are still areas that need to be improved if the province is to establish a leadership position in a globally competitive environment. www.oce-ontario.org/Cybersecurity-Report

For Canada, it will boost the Canadian economy with technology on a global stage. At the same time RegTech Canada will deliver and automate real life industry problems in monitoring and complying with regulatory obligations. In turn, Canada can set the stage to promote these finished products not only within Canada, but globally. Canada is ripe for a change from being known for only natural resources to leader in regulatory technology.


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03/03/2017by Matt Elton0

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.