RegTech Weekly Roundup

RegTech Weekly Roundup

UK regulators have recently launched a forum to share information and understand the challenges in relation to the adoption of artificial intelligence...

IA Fintech Member Insights: Clausematch 


Good morning!

In this week’s RegTech X, banking technology is a key theme. In an interesting development, UK regulators have recently launched a forum to share information and understand the challenges in relation to the adoption of artificial intelligence and machine learning tools by banks.

You’ll also find a link to an interesting report on the compliance burden that financial institutions face today. The report highlights the growing paralysis that banks are experiencing around compliance, as fulfilling each new set of regulatory requirements is becoming increasingly unsustainable.

Additionally, you’ll find news and developments in relation to RegTech, AML, bank fines, and central bank digital currencies

Have a great week! ☕


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Regulator UK 

The Financial Conduct Authority (FCA) has appointed Christopher Woolard as its interim chief executive. Woolard will replace Andrew Bailey, who is leaving to become the new governor of the Bank of England (BoE). (Financial Reporter) 2 mins

The FCA and the BoE have launched a forum to share information and understand the challenges in relation to the adoption of artificial intelligence (AI) and machine learning tools by banks. Companies are welcome to apply to participate in the forum, with final selection at the discretion of the FCA and the BoE. Firms active in AI/ML development, public authorities, and academics will be given priority. (Finextra) 2 mins

The BoE has recently teamed up with a number of other major central banks to analyse the advantages and disadvantages of a central bank digital currency (CBDC). The concept of a CBDC has been increasingly mooted lately to help improve payment systems and cross-border transactions. (The Guardian) 2 mins

A report from the International Regulatory Strategy Group (IRSG) and law firm Linklaters has suggested that the UK government should increase the scrutiny of financial regulators once Britain leaves the EU. The report also states that the UK should be more plugged in to international regulations and take them into account “where appropriate.” (City AM) 2 mins

Regulation EU

The European Commission has drawn up a list of UK financial industries to penalise if the UK strays too far from EU regulation after Brexit. In a meeting in Brussels last week, Commission officials told EU diplomats that they had identified 40 different types of financial services that could be frozen out of the EU’s market. (The Telegraph) 3 mins

Switzerland’s financial regulator, the Swiss Financial Market Supervisory Authority (FINMA) has banned an unnamed former bank chief executive from dealing securities for six years and also fined him 730,000 Swiss francs for insider trading. The regulator says the former CEO shared inside information with others for share trades, breaking internal rules and supervisory law. (The Wall Street Journal) 2 mins

Since the EU’s General Data Protection Regulation (GDPR) went into full effect in May 2018, European data protection authorities have received more than 160,000 data breach reports, according to law firm DLA Piper. Under the privacy regulation, EU data protection authorities have imposed €114 million in fines so far. (Bank Info Security) 3 mins

Regulation US

Former CEO of US bank Wells Fargo John G. Stumpf has been fined $17.5 million for his role in a toxic sales culture that had negative ramifications for millions of customers. In settlements with the Office of the Comptroller of the Currency (OCC), Stumpf also agreed to a lifetime ban from the banking industry. Other top Wells Fargo executives were also fined and hit with restrictions. (The New York Times) 3 mins

Regulation Asia

China is set to increase regulation of its financial services sector this year to ensure that no risk threatens economic stability, according to a senior financial regulator. Preventing financial risks is a top priority of the country’s policymakers. (ECNS) 2 mins

The Monetary Authority of Singapore (MAS) has issued three new consultations that deal with the different aspects of digital payment token (DPT) regulation under the Payment Services Act (PSA). The PSA comes into force on 28 January 2020. (JD Supra) 2 mins

Regulation Australia  

In a bid to increase accountability, Australia’s government has launched a consultation that proposes to extend the Banking Executive Accountability Regime (BEAR) to all entities regulated by the Australian Prudential Regulation Authority (APRA). The proposed accountability regime, the Financial Accountability Regime (FAR), will replace BEAR and apply to insurers, superannuation entities, and financial holding companies, with higher penalties for breaches. (Regulation Asia) 2 mins


Central banks collectively representing a fifth of the world’s population say they are likely to issue a general purpose digital currency in the next three years, according to a survey from the Bank for International Settlements. (Finextra) 2 mins


A new report from Bobsguide highlights the growing paralysis that banks are experiencing around compliance, as fulfilling each new set of requirements becomes increasingly unsustainable. You can find a link to the report here(Bobsguide) 3 mins

What does the future of the compliance function look like? Thomson Reuters is gathering information via a survey. (TR) 5 mins


Estonian RegTech start-up Salv believes its technology can prevent another banking scandal. Founded by Taavi Tamkivi, who previously worked for TransferWise, Salv offers cryptographically-secure communication technology that allows banks to help other financial institutions make smarter decisions about suspicious activity while keeping their most private data safe. (ZDNet) 3 mins

X A number of RegTech firms were at Davos last week. One such firm was Suade Labs, which offers Regulation-as-a-Service (Raas) in a software platform. Have a look at the recording of the press conference and other sessions following the links in this post(Linkedin) 1 min

US RegTech firm AxiomSL is to open a new business operations centre in Limerick, creating up to 100 jobs in the next five years. The new centre will house technical support and product management for the company’s RegCloud offering. (Irish Times) 2 mins

Gateway Private Markets, which invests in late-stage private technology companies, has selected RegTech provider Know Your Customer to deliver seamless digital onboarding to its clients. Know Your Customer’s end-to-end KYC solutions aim to simplify, automate, and accelerate time-consuming aspects of the investor onboarding process. (Finextra) 2 mins

Artificial intelligence-driven compliance technology firm FeedStock has raised £2.5 million in a recent funding round. Founded in 2015 by a former fund manager, FeedStock provides AI and natural language processing technologies to help both buy-side and sell-side institutions meet compliance requirements. (The Trade News) 2 mins


Davos delegates urgently need to make a big, bold commitment this year to FinTech, affirms the CEO of one of the world’s largest independent financial services and advisory organisations. (FinTech Finance)
The rise of the challenger bank is, according to a new report published by FT Partners, a global phenomenon. The report, The Rise of Challenger Banks: Are the Apps Taking Over?, explains that 12 challengers have raised US$100mn or more in equity financing, with six currently valued $1bn or more. (FinTech Magazine) 2 mins

UK FinTech Monese is in talks to raise £100 million from investors in a deal that would give the digital bank a valuation of more than £1 billion. The bank, which experienced substantial growth last year and is on track for five million sign-ups this year, offers a similar service to other digital banks such as Monzo and Revolut but caters to people who have been turned down by traditional banks. (City AM) 2 mins

The Global Financial Innovation Network recently launched a website. Check it out for all the latest news, developments, and member information. (Linkedin) 1 min


At Davos, regulation of AI was widely discussed. For instance, IBM, Microsoft are part of a growing number of technology companies calling for regulation around AI. (CNBC) 2 mins

A recent report on banking technology has concluded that while there is almost a universal awareness of what needs to be done to digitally transform financial institutions, the progress is still “slow to non-existent” at most companies. It goes on to say that this is a recipe for disaster in today’s banking ecosystem. (TheFinanser) 3 mins

Artificial intelligence technologies driven by machine reasoning are set to have a significant impact on the financial services sector, says Barley Laing, UK Managing Director at data firm Melissa. Laing says that in order to enhance efficiency with minimal risk, banks should be smart about AI, and not attempt to “do it all” with the technology. (Finextra) 3 mins

On the topic of AI, the Infocomm Media Development Authority has put together a list of quotes from top organisations regarding Singapore’s approach to AI governance. You can find the list here(Infocomm Media Development Authority) 5 mins 

Data integrity and operational efficiency will be high on the agenda of banking technology leaders this year, says Chris Ibbitson, Chief Technologist – Financial Services Industry at Hewlett Packard Enterprise. Ibbitson says the challenge for firms is ensuring and demonstrating compliance in this space. (Finextra) 3 mins

TSB Bank has partnered with IBM services to advance its offerings using IBM’s cloud capabilities. The goal is to enhance security and compliance as well as deliver services to its customers faster. (Information Age) 2 mins


New data privacy regulations such as California’s Consumer Protection and Privacy Act (CCPA) have implications for banks. Here’s a look at what banks should do next. (Finextra) 3 mins


Denmark’s national auditing agency said last week that efforts to combat money laundering and terrorism financing by Danish authorities have not been effective or adequate. Since 2013, the number of suspicious transaction reports submitted to Denmark’s Financial Intelligence Unit (FIU) has risen tenfold. The agency said the FIU’s electronic screening model was “too simple” and had a “range of weaknesses.” (Reuters) 2 mins


Recently, I was interviewed about ClauseMatch at FinTech Connect. You can find a link to the interview here(FinTech Finance) 2 mins


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