fintech for compliance: #regtechpubdocs.worldbank.org/en/388741560127590114/finsac-fintech-7-… ·...
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Fintech for compliance: #RegTechDr. Maciej PiechockiPartner, BearingPoint
@PiechockiMaciej
RegTech: the origin
The term RegTech was coined by:
a) a) Sandra Hering @ BearingPoint
b) b) Sir Mark Walport @ UK Treasury
c) c) Dr. Johannes Turner @ OENB
“RegTech is a sub-set of FinTech that focuses on technologies that may facilitate the delivery of regulatory requirements more efficiently and effectively than existing capabilities.” 1
“RegTech is the use of new technologies to solve regulatory and compliance requirements more effectively and efficiently.”2
1 Financial Conduct Authority (FCA) UK
2 Institute of International Finance (IIF)
RegTech: the problem
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There is no end in sight to the global regulation flood
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5
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1975 1980 1985 1990 1995 2000 2005 2010 2015
Nu
mb
er o
f p
ub
licat
ion
s
B C B S P U B L I C AT I O N S S I N C E 1 9 7 5
Standards Guidelines Sound Practices Implementations Others n/a
Basel I Basel II Basel III
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Banking regulation is increasingly restricting banks’ business models
SREP
EMIR
Pillar ICapital requirementsLiquidity requirements
Pillar IIInternal Capital AdequacyInternal Liquidity Adequacy
Competitors
Markets
Basel 3.5
I CashII LoansIII ….
I DepositsII DebenturesIII ….
IV Own Funds
Assets Liabilities
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Hardly anybody is even close to BCBS 239 compliance
Self-assessment ratings by Principles (31 G-SIBs/D-SIBs, BCBS 307)BCBS 239, Principles for effective risk data aggregation and risk reporting
GS 7-11
P 3-6
P 2
P 1 • Corporate Governance
• Data architecture and IT infrastructure
• Risk data aggregation capabilities
• Risk reporting
BCBS 239
BCBS 239, Key requirements
• Data governance• Data consistency• Adaptability• Agility
BCBS 239 Deadlines
G-SIBs
2013 2014 2015 2016 2017 2018
???SIBs
???All
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Regulatory Reporting
External rating/risk weights
Regulatory topics are tapping into architectures of dependencies
CoRep
Risk Reporting
Accounting
BCBS 239
Open facilities/compensation
Collateral/risk mitigation
Own Funds Leverage Ratio
Liquidity
Large exposures / Loans
FinRep(incl. Forbearance and Non-performing exposures)
Statistics(BSI, MIR, SHS)
Asset En
cum
bran
ceAnaCredit
FRTB
Fun
din
gP
lans
ECB-/Eurex …Pool Processing
EMIRMIFIR
RegTech: the panacea
RegTech
When the whole is greater thanthe sum of the parts
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RegTech can do more than ‘just’ reduce the cost and complexity of compliance within the confines of a financial system that is increasingly acknowledged to no longer fully serve its purpose
What problem is RegTech solving?
Reducing the costsand complexity ofcompliance?
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The role of RegTech is to recreate trust, confidence and transparency
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Regulation and Technology evolve organically
Regulation Technology
RegTechGeo-political context
The geo-political, economic and social environment determines the direction their development takes
Social contextEconomic context
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Regulated institutions, supervisory authorities, regulatory utilities
RegTech is about the entire the Regulatory Value Chain
Data collection, regulatory analytics, anddissemination solutions for regulatorsAward- winning platform for central banksand supervisory authorities
Robust, multi-tenant platforms for intermediariesEnabling intermediary regulatory platforms providingservices to the industry
Risk, valuation and reporting solutions forfinancial servicesMarket leading risk, valuation, tax and regulatoryreporting solutions
Thank you
http://reg.tech
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Dr. Maciej PiechockiRegTech Management Board
BearingPointSpeicherstraße 160327 Frankfurt
T +49 69 13022 6167M +49 152 22860072
www.bearingpoint.com
https://reg.tech