RegTech (short for Regulatory Technology) is bridging the gap between the demands of regulators and the needs of financial institutions. The complexity of understanding and complying with regulations immensely contributed to boosting awareness in technologies that efficiently and effectively address regulatory and compliance requirements. From a subset of fintech, governance, risk and compliance technologies rose to prominence and created its own market. RegTech has now become a reliable partner for financial services.
Last week, B-Hive hosted its first RegTech matchmaking event in London at the EMEA Innovation Centre of our partner - BNY Mellon. The goal of the event was to showcase innovative RegTech solutions to banks and market infrastructure players and we are excited to provide a venue for tech companies and financial institutions to collaborate on tackling upcoming regulatory challenges together.
The jampacked agenda started with a warm welcome from the BNY Mellon EMEA Innovation Centre gave us a warm welcome followed by a brief introduction about B-Hive. Ben Richmond, President of the International RegTech Association (IRTA), kicked off the full-day program with a key note speech about the current state of RegTech and what to expect from the industry in the future. He described an accelerating use of artificial intelligence and machine learning to decipher an ever-changing regulatory landscape and how organizations can apply these technologies to their advantage.
All in all, 14 companies gave a compelling 10-minute pitch each during the event, which inspired a buzzing matchmaking throughout the day.
An Introduction to Flexible Reporting
- dFakto presented the importance of flexible reporting effective governance, and agile piloting framework and how it meets the needs of data-driven management.
- Recordsure talked about how its technology is used by financial services to analyze conversations and identify underlying systemic issues before it becomes a problem.
- RiskConcile described how its technology can help asset managers comply with PRIIPS through machine learning.
- TRADEcho shared about its trade reporting platform and how its pre- and post-trade services assisted firms comply with MIFID I and MIFID II.
Key Insights from RegTech Workshop with Baker McKenzie
Our partner Baker McKenzie conducted a workshop with the event participants, of which the aim was to zoom into the several challenges related to RegTech, particularly on flexible reporting, document interpretation, compliance, and technology integration.
Below are the key insights:
- Institutions are still struggling to comply with a constantly evolving regulatory environment.
- Automation is being done as much as possible, but firms still revert to manual correction.
- The technology of third party vendors are difficult to integrate to legacy systems.
- RegTech is still being seen mostly as a cost instead of an asset.
- Regulators may not be using document interpretation tools.
All these serve as barriers to a wider acceptance and application of RegTech. It was agreed that it is important to continue lobbying regulators regarding these concerns.
An Introduction to Document Interpretation
- Contract.fit provided a real-life demo and described how its platform can interpret documents and emails.
- CoVi Analytics also shared a demo of its solutions and discussed the ability of CoVi Analytics to automate horizon scanning and search for regulations in different sources.
- Cumul.io explained the ease of creating, sharing, and integrating business data using its database and cloud services.
- Yields.io showcased how it can tackle modelling risk and use a machine learning platform for model validation.
The Top of RegTech Track
- Alyne shared about its software and how it creates deeper risk insights and faster value creation.
- Cambridge Blockchain spoke about how it creates a common set of attributes that can be used by organisations perform KYC using validated data.
- Percentile presented its integrated risk platform that can visualise the entire risk of a bank, display every position of the bank, and show how it affects the balance sheet.
- Corlytics walked us through how its solution can help banks intelligently spend its compliance budget.
- CUBE shared about its automated approach in finding a solution that is expandable and scalable for large financial institutions.
- Signaturit shared its ability to identify persons using different authentication processes and certify any communication between parties.
After a full day of discussing common regulatory challenges and identifying potential common use cases, we’re happy to call our first RegTech matchmaking event a fruitful success!