The last two weeks have seen a lot of regtech news. The year 2017 is drawing to a close PSD2 and MiFIDII are looming.
In the U.K., regtech is attracting big names. The CEO of Tesco Bank, Benny Higgins, has been named non-executive chair of the regtech startup, Kyckr. Kyckr developed KYC technology which focuses on allowing its users to maintain customer data while identifying risks in real-time. The regtech startup also has its own API, integration of which allows real time customer verification. The U.K.-based company is look for european expansion.
Also in the U.K., it was announced that EU anti-money laundering rules – AML – will apply to cryptocurrency transactions in the U.K. This means that traders will be forced to disclose identity. It also signals alignment of digital policy between the EU and the U.K. Furthermore, the decision may likely have been made reflecting the continual growth in the value of bitcoin that we have seen in the last weeks.
KYC is all the rage as it meets for customer due diligence (CDD) requirements. As such, the European Commission has commissioned Deloitte to run a survey of SMEs asking them about digitisation. The survey is specifically concerned with implementation of eIDAS; electronic identification, authentication and trust services. Electronic identification and trust is increasingly affecting our digital financial power; both as consumers in accessing services and financial institutions who provide them. Electronic identification relates to data security and KYC. It is an important field considering the changes to come in 2018.
Energy in regtech is needed, considering that fixed-income dealers are spending as much as $20 billion a year on regtech. Compliance demands take time away from clients; harming client relationships and profitability. A report from Greenwich Associates shows that MiFIDII is forcing dealers to upgrade technology, demonstrating the increased need for regtech at this time.
The sheer cost of compliance is why Deutsche Bank last week urged adoption of regtech to spur wider compliance for the PSD2. AxonIQ’s Frans van Buul told Holland FinTech that some of their customers are being blindsided by one set of regulation and forgetting to ensure compliance with the other. At this time of great change in the law, there is an increased value of regtech.By Grace Appleford, Research Analyst at Holland FinTech.]]>