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Will regtech break financial firms’ value chain? 

Regtech may be the answer to regulatory complexity, but it could also alter banks’ role in the financial ecosystem

On November 8, Capco Institute hosted a seminar in Zurich where leading academics and senior executives discussed the impact of regtech on the financial services industry. Participants included:

  • Rolf H. Weber, Professor for Civil, Commercial and European Law, University of Zurich Law School
  • Patrick Barnert, CEO, Qumram
  • Thomas Bischof. Head Public Policy & Regulatory Affairs, UBS AG
  • Monica Mächler, Dr. iur., Attorney-at-Law

 

Financial institutions are becoming increasingly data-driven. In addition, they must deal with a regulatory avalanche and financial fines that are 45 times higher than in 2010. Regtech may be the technological solution to the data and regulatory reporting challenges that the financial industry has been looking for. 

Since regtech’ first advent in the UK in 2015, its long-term ambition has been transparency through better risk management and IT compliance. Its immediate benefits include record keeping and reporting, monitoring and surveillance, know your customer and prevention of financial crime.

While there is no doubt that regtech will bring agility and improved efficiency to many financial firms, there is still a gap between its vision and current status. Financial firms need to react and adapt quickly - to benefit from regtech - particularly if they want to keep up with demands of younger, digitally-minded generations of consumers.
 
Regtech may also be the catalyst for change in the evolving financial ecosystem. Consumer needs are the driving force behind any regulatory demands. Financial institutions must prepare for a change in the value chain, to remain relevant in the future ecosystem.
There is a lot of potential for regtech, but it needs to be addressed now. For financial institutions, this means starting with a transformation from ‘know your customer’ to ‘know your data’. 

To get in touch with Capco’s regtech experts, contact Dr. Ingo Rauser, Partner.


Prof. Rolf H.Weber’s paper Regtech as a new legal challenge appears in edition #46 of the Capco Journal of Financial Transformation at the end of November 2017 .

 

 

 
 
 
 

About the Author

Dr. Ingo Rauser

 

Dr. Ingo Rauser is a Partner based in Capco`s office in Switzerland. He has profound expertise in both Banking and Finance, Risk and Compliance.

You can read Ingo's full profile here.

 
 

The content and opinions posted on this blog and any corresponding comments are the personal opinions of the original authors, not those of Capco.