34
SIBOS 2017 ROUNDUP
Regtech comes to the fore
Regtech - technology to help companies manage their regulatory compliance challenges - was one of the main topics of conversation at this year’s Sibos
T
he culmination of all the talk about regulation that has been taking over events and conferences recently came with regtech at Sibos. At Money20/20 in Copenhagen, all our meetings ended up in one way or another around topics like PSD2 or GDPR. It seems that in spite of the fact that reports keep coming nearly weekly about how awfully unprepared financial institutions are for these and other regulations, they have been the talk of the town for a while, and will have a more immediate effect than cooler topics like fintech.
These negative reports, hinting at irresponsibility by banks, hardly reflect the preoccupations of what we have seen on the ground. People are talking about regulatory requirements; in other words, KYC (Know Your Customer), data protection and data sharing – we like to call it “regtalk”.
Pegasystems kicked off our event early on Monday morning with their robotics and AI proposition, designed to ease big corporations into regulatory demands. Regtech has been sneaking its way to the lead and now it’s Pega’s time to enjoy the spotlight, with an offering that looks at data gathered by onboarding processes and builds profiles and assesses risk based off this KYC data. The evening event that the company hosted at the Art Gallery was a great way to set the tone of their ambition.
IBM has seen the potential for AI to make a breathrough in the regtech market, and is pushing hard with Watson into KYC and data analytics. IBM started pushing AI in healthcare areas, but similarly to Pega, regulation compliance is now high on their list of priorities. Watson is able to compare new regulation with banks’ policies and figures out what the consequent steps to take are.
Additionally, IBM is also heavily involved in the area of financial crime by enriching the KYC processes in onboarding. Manually intensive processes like this take too many resources and are too
inaccurate, according to Vivek Bajaj of IBM, but analysing both structured and unstructured databases can solve the issue of false positives . Bajaj says that more than 90% of flagged data inputs end up being false positives. “IBM Watson is now being used as an aid in decision making in transaction monitoring areas as well,” he said.
Even CLS, which processes most of the FX trade in the world, has already started looking at what to do and how to process the data that results from all these transactions. Alan Marquard, from CLS, commented that they will find ways to utilise this data in KYC processes and transaction monitoring.
Lastly, IBM is looking at communications, both voice and email, to keep up with internal conduct surveillance. This means that your own employees would be invigilated by IBM’s tech in case they are the ones responsible for leaking out data that would be compromising.
www.ibsintelligence.com | © IBS Intelligence 2017
Page 1 |
Page 2 |
Page 3 |
Page 4 |
Page 5 |
Page 6 |
Page 7 |
Page 8 |
Page 9 |
Page 10 |
Page 11 |
Page 12 |
Page 13 |
Page 14 |
Page 15 |
Page 16 |
Page 17 |
Page 18 |
Page 19 |
Page 20 |
Page 21 |
Page 22 |
Page 23 |
Page 24 |
Page 25 |
Page 26 |
Page 27 |
Page 28 |
Page 29 |
Page 30 |
Page 31 |
Page 32 |
Page 33 |
Page 34 |
Page 35 |
Page 36 |
Page 37 |
Page 38 |
Page 39 |
Page 40 |
Page 41 |
Page 42 |
Page 43 |
Page 44 |
Page 45 |
Page 46 |
Page 47 |
Page 48 |
Page 49 |
Page 50 |
Page 51 |
Page 52
