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FinTech Trends Newsletter Week 27th-31st March 2017
RegTech: Crucial Pillar of Financial Technology (FinTech)
The financial sector adheres to strict regulations, including the FinTech companies and vendors, like Storm IT Financial, changing the world of finance, but the tech- nology handling regulatory compliance is also adapting.
Better known as RegTech, regulation technology is emerging as a means to handle the data and security that make dealing with finances and regulated sectors such as Finance, Legal and Accounting so sensitive in the digital era. Organising data through analytics with identification and authority is important for any financial entity, and FinTech companies are no exception.
By managing more and more data and the need to store more data to comply with regulators like the FCA, SEC and directives like MiFID II, set to take effect from 3rd January 2018, FinTech companies and vendors require tools to ensure compliance with greater agility and credibility and technologies that help firms comply. As they evolve their own technologies, RegTech has done the same, forging an unlikely situation where various sides of the equation are working closer together.
With implementation of the revised Markets in Financials Instruments Directive (MiFID 2)approaching fast, firms are turning their focus to the key changes the MiFID 2:
Record keeping
“Investment firms must arrange for records to be kept of all services, activities and transactions undertaken which are sufficient to ena- ble the competent authority to fulfil its supervisory tasks”
Telephone and other recording
“Records shall include the recording of telephone conversations or electronic communications relating to, at least, transactions. The records kept in accordance with the recording requirements shall be provided to the client involved upon request and shall be kept for a period of five years and, where requested by the competent authority, for a period of up to seven years.”
RegTech brings together unlikely partners – banks, regulators technology firms and vendors – to create, offer and manage solutions, which Storm IT offer, that will benefit the financial services industry as a whole. It’s only through collaboration that financial institu- tions can achieve reliable, cost-effective compliance while regulators can ensure that regulatory control is being managed effectively.
This does mark a significant shift for all involved, because legacy systems have long managed compliance from a distance. RegTech can have a more immediate impact, with basic tasks that reduce operational risks in meeting compliance and reporting obligations.
It could also help FinTech reorient more resources and focus on security and risk mitigation, which is critical when identification and authority need to be protected from being compromised.
RegTech offers an opportunity to repurpose compliance teams, offering the opportunity to automate typically mundane but burdensome tasks and allowing them instead to establish a renewed focus on risk mitigation. The goal is to continue to remove hurdles that would hinder FinTech’s contribution to creating an enhanced, fair, and resilient financial system – from this perspective RegTech is an innova- tion enabler.
Storm IT Financial is here to offer advice and to simplify the whole customer experience. Call us for further information.
Storm IT Financial FinTech News & Trends picks: Week 27th Mar – 31st Mar 2017
Microsoft Azure Backup’s cloud-first approach and why it matters
Backup is all about how quickly you can be back up from a disaster or data loss situation…:
https://azure.microsoft.com/en-us/blog/azure-backup-cloud-first-architecture/
KPMG survey reveals the impact of technology
Determining how managers are responding to Technology:
http://www.hedgeweek.com/2017/03/24/249981/kpmg-survey-reveals-
impact-technology
Adobe, Microsoft Team Up in Azure Cloud to Transform Customer Experiences
Adobe and Microsoft recently started working together & unveiled their first set of solutions aimed at improving customer experiences:
Digital challenger bank Monzo just smashed another crowdfunding rec- ord on Crowdcube
Digital challenger bank Monzo has smashed another record to its crowd- funding campaign:
http://www.cityam.com/261927/digital-challenger-bank-monzo-just-smashed-another
There’s no such thing as a free lunch: Why business needs to understand cloud threats
Security still tops the list of barriers to adoption:
Microsoft study warns of difficulty organisations face in attracting cloud skills
‘Difficult’ or ‘very difficult’ to find specific cloud skills for their organisation…:
UKFast opens trapdoor under prices, taking a swipe at AWS
British Cloud hosting biz UKFast has dropped its prices for cloud hosting, taking a pop at AWS as it does so:
How tech is shaking up the world of banking
Key to explaining the success of digital challengers:
http://techcitynews.com/2017/03/23/tech-shaking-world-banking/
London holds off New York to keep its title as the world’s number one financial centre despite Brexit uncertainty
London has held onto the top spot as the world’s lead- ing financial centre, according to a global study:
Businesses say cloud is essential to analytics
Combination of hybrid and public cloud infrastructure used by 61% of companies
BIG open-source love Microsoft and Google? You still won’t catch AWS
Amazon, Microsoft, and Google, are starting to com- pete on the basis of open source for clouds
