Encompass Corporation joins regtech platform from Innovate Finance and City of London Corporation
Innovate Finance, City of London Corporation and Encompass Corporation are among the industry-leading bodies and vendors that have formed a regtech platform to supercharge industry acceleration, tackle key challenges and give a strong voice to regtech providers.
Today, financial services organisations can face complex challenges when beginning their journey of exploring regtech solutions, including lacking a clear understanding of potential providers, defining their own business objectives, and understanding how these can be achieved. It is these issues, and more, that created the basis for the newly developed group as it looks to address critical issues by providing practical insights and guidance, as well as advocating for the place of the industry and its solutions.
In the lead up to UK FinTech Week, April 15-19, the group has launched the regtech Test proposal, suggesting how the formation of regulatory policy could consider the impact of new or amended rules on existing compliance technology stacks, as well as how innovative RegTech solutions could more effectively help firms meet the objectives contained within the policy.
The proposal, which sits within a paper titled ‘RegTech Test: Identifying the Policy Impact on Compliance Technology’, also outlines the three critical roles that regulators play in overseeing the financial services industry – policymaking, supervision and enforcement.
Innovate Finance expressed that “the true potential of regtech has not been realised despite its significant benefits,” prompting the development of the RegTech Test, and work aimed at supporting regulated firms to ultimately improve compliance with regulatory standards.
The regulatory framework, particularly when it comes to Know Your Customer (KYC) and anti-money laundering (AML), is evolving at pace, with regulations designed to fight financial crime on a global scale. As regulators react to the changing landscape, the role of technology in helping organisations to meet their compliance obligations while optimising business growth is increasingly important, with the regtech platform aiming to support businesses through awareness and education of the potential of regtech.
Dr Henry Balani, global head of industry & regulatory affairs for Encompass Corporation, the leader in Corporate Digital Identity (CDI), said: “Financial crime remains a pressing global issue, which has only increased over the last few years, and, as a result, regulators have acted by developing new regulations. The challenge lies in developing effective regulations that financial institutions can implement, with the onus on ensuring they have the systems in place to quickly and efficiently respond to changing obligations – something that is particularly challenging when compliance processes are largely manual.
“With the RegTech Test, regulators will feel confident their constituents utilise the latest regtech solutions effectively, which will have a transformative impact for financial institutions, both in terms of compliance and ultimate business growth and efficiency. As a result, championing the industry has never been more important.
“Moving forward, it is imperative that regtech providers have a clear voice and, where regulations are concerned, a seat at the table. As a group, our aim is to improve alignment and collaboration between regtech providers and regulators, to the benefit of all, including financial institutions.
“We hope to bolster the ecosystem through awareness and education. By bringing together all stakeholders with common goals, we can continue to make progress in the fight against financial crime and accelerate the adoption of the technologies and technology-driven processes that have a significant role to play moving forward.”
To read the full paper, visit: https://www.innovatefinance.com/policy-blogs/regtech-test-identifying-the-policy-impact/?utm_campaign=Policy&utm_content=288550310&utm_medium=social&utm_source=linkedin&hss_channel=lcp-5001045
