the full picture, this week – 3 May 2019

by | May 3, 2019 | All Blog Posts, the full picture this week, Featured

Let us put you in the picture this week, as we round-up and react to the latest news from the financial crime compliance and technology sectors.

This week we’re covering highlights from the Innovate Finance Global Summit that took place in London over two days.

We also take a look at a recent McKinsey article focused on transformation in risk efficiency and effectiveness.

These issues, and more from around the globe, give us plenty to dive into for your Full Picture, This Week…

Click here to get the full picture sent to your inbox every Friday.

fintech takes centre stage at Innovate Finance Global Summit

the full picture, this week – 03 May 2019 | Innovate Finance Global Summit | encompass blogFinTech took centre stage when finance professionals from across the globe gathered in London this week. In his keynote speech at the Innovate Finance Global Summit, Bank of England governor, Mark Carney, promised a “new Bank of England” to support the needs of a “new economy”.

Referring to the Fourth Industrial Revolution, and changes in consumer expectations, Carney spoke of the need to support a digital economy with a new approach to finance:

The new finance will be more inclusive, allowing everyone to be better connected, better informed, and more empowered. We’re adapting our hard and soft infrastructure, to create the conditions for such innovation to flourish and promote the good of all the people of the United Kingdom.

Carney also referred to the potential for automation, machine learning and artificial intelligence to be used to simplify banking supervision.

the full picture, this week – 03 May 2019 | David Ramsden Deputy Governor Bank of England | encompass blogAlso speaking at the conference, Deputy Bank of England Governor and head of the Bank’s FinTech Hub, Dave Ramsden, highlighted the importance of appropriate regulation to avoid financial activity moving to an unregulated shadow banking sector saying:

… it is important that we analyse the implications of any such migrations for financial stability as well as the impact on, and strategic response of, the banks and insurers that we supervise through the PRA [Prudential Regulation Authority]. This will be an important area of work for the Fintech Hub, working with supervisory colleagues in the PRA, in the coming months.

Read more here and here.

the encompass view

Valued at around £7 billion and employing over 75,000 people, the fintech sector in the UK is thriving, and it’s no surprise that this sector was the focus of many of the speeches at the Innovate Finance Global Summit. The optimism surrounding this sector came through strongly at the conference, and it was encouraging to hear from senior financial leaders and politicians that supporting the growth of fintech in the UK is a priority.

The regulatory theme came through loud and clear, however, and it’s critical that fintechs now take a proactive approach to collaborating with regulatory authorities to ensure an environment that continues to support growth and innovation. In addition, fintechs should thoroughly review their compliance policies and procedures to ensure they meet today’s standards and can quickly be adapted to meet future requirements.

Fintechs should be encouraged by the claim that technologies, including automation, could be adopted by regulators to simplify rules and make compliance with relevant laws easier. To thrive, firms in this sector need to maintain focus on their core activities rather than see development and innovation slow down due to an increased regulatory burden.

the encompass view

Valued at around £7 billion and employing over 75,000 people, the fintech sector in the UK is thriving, and it’s no surprise that this sector was the focus of many of the speeches at the Innovate Finance Global Summit. The optimism surrounding this sector came through strongly at the conference, and it was encouraging to hear from senior financial leaders and politicians that supporting the growth of fintech in the UK is a priority.

The regulatory theme came through loud and clear, however, and it’s critical that fintechs now take a proactive approach to collaborating with regulatory authorities to ensure an environment that continues to support growth and innovation. In addition, fintechs should thoroughly review their compliance policies and procedures to ensure they meet today’s standards and can quickly be adapted to meet future requirements.

Fintechs should be encouraged by the claim that technologies, including automation, could be adopted by regulators to simplify rules and make compliance with relevant laws easier. To thrive, firms in this sector need to maintain focus on their core activities rather than see development and innovation slow down due to an increased regulatory burden.

Paul Joseph | Business Development Director, encompass

increasing risk efficiency and effectiveness

McKinsey & CompanyThe fast growth in risk and compliance headcount to deal with increased regulation has led to significant complexity in risk management processes. As a result, any attempts to cut costs were viewed as too risky. However, banks are anticipating a period of regulatory stability and may use this as an opportunity to tackle the thorny issue of cutting costs related to risk management, according to McKinsey.

The article stresses the importance of a holistic approach to transformation in risk management and outlines four sequential steps firms should take to ensure success – optimising the organisation, rationalising governance, streamlining and strengthening processes and digitising and deploying advanced analytics.

See the detail behind the steps here.

news in brief

Newly licensed virtual banks in Hong Kong are struggling to hire the resources, according to headhunter Robert Waters in an article on Bloomberg. Skills gaps are particularly acute when it comes to cybersecurity and regulatory/compliance knowledge.

The U.S. Office of Foreign Assets Control (OFAC) has imposed the first penalty for Russia Sectoral Sanctions violations. This is a clear message that firms should exercise caution in relation to sanctioned entities and ensure sanctions compliance is robust and effective.

The Office for National Statistics (ONS) in the UK is turning to big data to facilitate tracking of Foreign Direct Investment and “construction” statistics. The organisation wants to take a big data approach to company data including ownership information and balance sheets.

the latest from encompass

If you missed our webinar on Understanding 5MLD featuring published academic and regulatory advisor to encompass, Dr. Henry Balani, you can catch up on it now.

Over on our blog, we explore the critical importance of AML audit chains in regulatory compliance for banks.

The world of Know Your Customer (KYC), compliance and financial crime never sleeps, and if your challenges are keeping you up at night let us help. encompass intelligently automates information and news discovery for KYC requirements for onboarding, event-driven refresh and remediation.

Driven by your internal policies, our platform automatically constructs corporate ownership structures, discovers beneficial owners, and in minutes screens all relevant entities and persons for regulatory, reputational and financial risk.

By continuing to use the site, you agree to the use of cookies. more information

our website and use of cookies

Your personal information will not be collected if you are only browsing one of our websites but we do use cookies to better tailor our information and our services to meet your needs.

A cookie is a small piece of text that is placed within the memory of a computer and can be later retrieved by web page servers. Cookies are used to enhance your interaction and convenience in using our website and we do not use cookies to record any of your personal information. Cookies may record information about your visit, including the type of browser and operating system you use, the previous site you visited, your server's IP address, the pages you access and the information downloaded by you.

While this anonymous statistical data may be aggregated and used in broader statistical analysis by us and our web monitoring service provider to improve our services, we cannot personally identify you as the source of that data until such point as you provide your personal information to us.

close