As regulatory compliance legislation begins to bite within financial services firms, tech will only grow in stature. The importance of individuals who have knowledge of technology and particularly RegTech will therefore be vitally important to future success.
Writing in GT News, encompass industry advisor Jon May discusses how the regulatory environment continues to move at breakneck speed.
The KYC ecosystem continues to change as changes are made in legislation. With an industry as heavily regulated as the financial services sector, it is unsurprising that tech companies have been working with banks to help them with their regulatory compliance.
These RegTech firms, are able to help with regulatory compliance by offering SaaS solutions to banks that are encumbered by legacy systems.
“According to Thomson Reuters around $80bn is being spent on regulatory compliance and this figure is set to rise by 50% to $120 in the next five years. In 2008 they were tracking around 10 regulatory changes per day, in 2016 it was 200 – a staggering 20-fold increase.”
For some banks what is required is a complete turnaround in how they view the technologies that currently exist. Is RegTech playing its part in a different kind of paradigm shift? The mounting costs of compliance combined with rising fines, increasing regulations, and tech – whether blockchain, robotics, AI, machine learning – are all evolving fast. Coupled with a change in customer expectations, and the importance of a digital transformation seems clear.
Read the views of Jon May on GT News:
Tomorrow's treasurer will undoubtedly need to be tech savvy - as will every senior finance professional. Importantly, they will also have to have the ability to re-imagine their KYC, regulatory and compliance ecosystem if they are to keep up with the evolving regulatory environment and have access to the liquidity and services they require when and where they want them.
ABOUT JON MAY | INDUSTRY ADVISOR
Jon is financial services industry advisor for encompass and CEO of JJC FinTech. Prior to setting up JJCFinTech, Jon was hired by IHS Markit to run their industry KYC utility, kyc.com and global Regulatory and Compliance Managed Services. Jon spent two years working with a consortium of 15 banks creating a single standardised policy and process for KYC. During this time, Jon established a reputation for industry leading transformation of KYC, regulatory and compliance solutions. Jon joined IHS Markit from Goldman Sachs where he was Managing Director and global head of Client Onboarding.
Connect with Jon on LinkedIn.
Founded in 2011 by entrepreneurs Roger Carson and Wayne Johnson, and operating from the UK, encompass is the creator of unique, innovative Know Your Customer (KYC) software for banking, finance, legal and accountancy that enable better, faster commercial decisions. The company is driven by the belief that the best decisions are made when people understand the full picture.
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