”Though the bulk of start-ups in this space are focused on compliance in the financial services sector, there are several start-ups that are working on regtech related to healthcare, environmental protection, food and drug, cybersecurity, blockchain, and even cannabis.”
I’m not sure Donald Trump will step in to protect a rust belt of regulators made redundant by technology but even if he doesn’t, the world of regulation is actually pivoting to the degree humans are becoming more important, rather than less.
SAFE & SEAMLESS
Connick makes this point in her BlueNotes interview, arguing the stakeholders for cyber-security are not just management and regulators but customers who expect a safe, seamless and engaging technology experience.
Elsewhere in BlueNotes there is a fascinating insight into the new fronts in the campaign against fraud.
Ellen Joyner Roberson from SAS Security Intelligence outlines the technology being arrayed and systems needed while ANZ’s head of fraud risk strategy Tamsyn Harris makes the crucial point that much fraud targets individuals rather than transactions and so there needs to be a strong focus on the human element.
Across this universe from regulation – which encompasses both institutional integrity via capital and liquidity provisions, for example, and consumer protections – to cyber security to strategy, it is increasingly evident even as regtech grows in scope and sophistication human guidance will be increasingly important.
Part of this is the mechanics of how institutions run: regulators increasingly demand more-involved boards and boards want to hear from executives in charge who can answer questions, explain data sets, make recommendations and assure directors they can sleep easily at night. They need senior individuals who can translate what the technology is doing.
Announcing the appointment of Connick, ANZ said she joins “from the Australian Government where she delivered the new National Cyber Security Strategy in the Department of the Prime Minister and Cabinet”.
In its review of regtech start-ups, CB Insights identified eight sub-categories: anti-money laundering (AML) and Know-your-customer (KYC) solutions; blockchain and/or Bitcoin; Enterprise Risk Management; Operations Risk Management including governance, risk mitigation, incident identification, issue tracking, monitoring for compliance obligations, data storage, and reporting; Portfolio Risk Management; Quantitative Analytics; reporting – including centrally maintaining information for future reporting requests; tax management; and trade monitoring – including monitoring compliance with trade restrictions.