sandra freeman - brighttalk presentation 05202016
TRANSCRIPT
How do new regulations affect banks vs. new fintech start-ups?
BrightTALK FinTechSummit, May 20th 2016
Panelists
Sandra Freeman
Accuity/Fircosoft
Risk and Payments Consultant
CAMS (Certified Anti-Money Laundering Specialist)
Disclaimer: Views are my own and do not reflect those of my employer or its clients.
Lory Kehoe
Deloitte, Ireland
Senior Manager in Financial Services Consulting Practice
Donald Gillies
CEO and Cofounder, Passfort
Passfort is Compliance As A Service (CAAS) web application designed to help business with the onboarding process
Setting the Stage
US and UK Regulators Respond to FinTech
“Innovation is laudable but only as long as it does not unreasonablyexpose our financial system to tech-smart criminals eager to abuse thelatest and most complex products.”
- Jennifer Shasky Calvery, Director of the Financial Crimes, U.S. Financial Crimes Enforcement Network (FinCEN)
Source: FinCEN Press Release, July 2015
“Our aspiration is that the [regulatory] sandbox not only enablesinnovative ideas to be tested and brought to market, but also helps toreduce the time and the cost of getting them there."
- Tracey McDermott, Director of Enforcement and Financial Crime, UK Financial Conduct Authority (FCA)
Source: FCA Press Release, May 2016
Regulatory fines –what for?
FINTECHBANKS
Data Sources: FinCEN, CFPB, U.S. Dept of Treasury, State of FloridaData Sources: Reuters Graphics, 2015
(in billions of dollars)
FinTech Fines
Data Sources: FinCEN, CFPB, U.S. Dept of Treasury, State of Florida
Regulatory Challenges
FINTECH STARTUPS
Understanding the requirements (Ripple Labs)
Creating a compliance program, procedures and training employees (PayPal)
INCUMBENTS
Creating efficiency within the existing compliance program
Enabling informed risk decision-making across functions
Lessons Learned by FinTech Startups
Engage in early dialogue with the regulator
Appoint Chief Compliance Officer and get staff trained
Create a scalable and responsive compliance program
Do not reinvent the wheel
Key RegTech Trends
Big Data Technologies
Machine Learning
Blockchain and Distributed Ledgers
Discussion
What are the regulated entities?
How do new regulations affect banks vs. FinTech startups?
How can startups prepare for the regulations?
What role does RegTech play in helping organizations remain compliant?
Do regulators have the scope to accommodate FinTech companies?
Why is it difficult for the existing financial structure to deal with the FinTech startups?
Questions?