RegTech London Reveals that KYC and GDPR are Top Regulatory Concerns for Financial Institutions
This October, Opus attended the RegTech Summit for Capital Markets, a one-day event for practitioners of regulatory change organized by the A-Team Group. The COOs, CDOs, CTOs, and heads of regulatory reporting, compliance, and data operations gathered at RegTech London learned about new approaches to regulatory change and innovative technology solutions for today’s regulatory challenges.
While at the event, several takeaways about the roadblocks facing the banking and financial institution community became clear, including Know Your Customer (KYC) compliance and the upcoming General Data Protection Regulation (GDPR).
RegTech London Highlights Tech Solutions for KYC Compliance
Financial institutions face a significant challenge in understanding their regulatory requirements and knowing how to comply with them, due to the pace at which the regulatory environment continues to evolve. RegTech London highlighted the way that innovative technology can ease this challenge.
As many financial institutions know, the KYC onboarding process can be inefficient and long. New technology is removing much of the surrounding ambiguity to make the process faster, in turn allowing banks to realize new revenue more quickly.
In the traditional onboarding process, a relationship manager (RM) completes a client onboarding form and sends it to a separate onboarding team. In many cases, the form may not specify exactly which of the potential customer’s legal entities need to be onboarded. For example, if Microsoft is the name provided on the onboarding form, the onboarding team has to determine if the potential customer is actually the Microsoft Corporation, or one of Microsoft’s many entities. The resulting back and forth between the RM and onboarding team to determine the correct legal entity can waste a lot of time.
Opus’ Resolve alleviates this problem by providing a single view of client and content for an entity, making it easy to find the correct one. Integrating the functionality into onboarding platforms helps banks reduce inefficiencies and speed up onboarding.
Using Registry Data to Power KYC Compliance
At Opus, we are seeing many clients using a mix of premium and open source data to perform KYC. As some of the registries have dropped charges for accessing data, Opus has integrated some of these into our solutions for an easy way to pull back documentary evidence.
Companies House is a great example, now offering their data for free. We believe that other registries will follow and as they do, a future focus will be on seamlessly integrating these data sources into our platforms.
GDPR: An Urgent Regulatory Concern for RegTech London Attendees
GDPR compliance is a top priority for financial services organizations. These firms are entrusted with large volumes of customer data, and failure to protect this when GDPR comes into force will not only result in reputational damage, but fines that are large enough to potentially wipe out a company’s entire profit.
While most firms have addressed the security of their internal systems, a network of third parties can expose them to significant risk. This is especially true in financial services, where the use of new technology provided by innovative fintechs has become increasingly common. These third party providers may not be as focused on their own security, making them an easy target for hackers and cyber-criminals.
Opus’ new Third Party GDPR Compliance solution, which was developed based on published regulatory guidance from the UK’s Information Commissioner’s Office, allows organizations to identify third parties that expose them to risk while providing a strong framework to manage that risk.
RegTech London revealed these exciting innovations taking place within regulatory technology that are helping financial institutions manage their risk and compliance more effectively. With regulatory requirements increasing in number and complexity, it’s clear that the need for efficient solutions for data management and regulatory reporting is felt across the industry.
Find this post helpful? You’re invited to a breakfast briefing on managing third party risk in-line with GDPR. Join us in London on October 10th, 2018.
To learn more about Opus data solutions, download the Opus Reference Data Services Fact Sheet.