Regtech Rising (12 Days of Fintech #10)
David Shrier
Managing Director, Visionary Future | Professor of Practice, Imperial | author of BASIC AI
Our last few days of 12 Days of Fintech are here, and with it we explore some of the hottest topics currently being developed in industry. This week, Amias Gerety, a former senior US government official, working together with Prof. Lev Menand of Columbia Law School, give us a window into the dynamic world of regulation technology or 'RegTech'.
Understanding RegTech, a fast-growing area of fintech which is expected to reach more than US$ 130 billion of annual spend by 2025, is essential both for leaders of financial institutions and for entrepreneurs seeking fast-growth market segments. It's no accident that Cambridge Judge Business School has launched a RegTech class with my startup, Esme Learning.
With the burden of compliance causing each of the top-20 global banks to spend more than US$ 1 billion per year on compliance reconciliation (such as around anti-money laundering, AML), and the broader compliance function comprising more than 20% of all costs related to running a bank, the drive for automation is relentless. Concepts such as automated auditing may "drive a wedge between risk and compliance" in the words of the authors. The authors also explore the perspective of regulators and supervisors, and how they are assessing risk and compliance, drawing a roadmap for RegTech intervention.
More on how a former US Treasury official (who is now investing out of venture capital fund QED Investors) and a distinguished law professor are assessing the risks and opportunities in RegTech can be found in Chapter 10 of Global Fintech.
* * *
How the global financial services sector has been transformed by artificial intelligence, data science, and blockchain.
* * *
The opinions in this column are my own, and do not necessarily reflect those of Imperial College Business School, Esme Learning, ADEX, or any other entity with which I am affiliated. My private investment & advisory portfolio is disclosed at www.VisionaryFuture.com.
* * * * *
Catch up on the back posts in 12 Days of Fintech!
Managing Director, Visionary Future | Professor of Practice, Imperial | author of BASIC AI
3yQED Investors Ashley Marshall
Managing Director, Visionary Future | Professor of Practice, Imperial | author of BASIC AI
3yMelissa Koide Greg Medcraft Oliver Garrett-Jones Dimitrios Psarrakis Robert Wardrop Hunter Sims