What does the current global RegTech ecosystem look like? Brexit and FinTech The RegTech ecosystem is evolving quickly, with several regulators and industry forums driving solution development, start-ups focusing on different aspects of On June 23, 2016, UK voters the market and use cases expanding from core operational requirements of the FS chose to leave the European industry. Union, creating uncertainty, Global regulators and industry forums have started to provide support, guidance including around the FinTech sector, in the United Kingdom. and, in some cases, an incubator-like environment to facilitate the growth of The United Kingdom has fostered RegTech solutions as well as foster dialogue between various stakeholders. The innovation and disruption in FS, European regulatory bodies have been leading the pack by setting an environment and how UK-based FS companies that enables RegTech innovation. The Financial Conduct Authority (FCA) in the continue to operate in Europe will United Kingdom last year published a list of the most promising RegTech start-ups be a critical part of the pending that provide a range of solutions such as risk control and management, activity negotiations. The UK FinTech and transaction monitoring, Know Your Customer (KYC) identity verification, sector could be particularly regulatory reporting, risk data warehouses and case management tools. Some impacted if its ability to perform notable mentions from North America in that list were IdentityMind, Quarule, cross-border payments isn’t Tradle and Trulioo. protected through negotiations. The recent actions of the FCA, North America generally plays catch-up with Europe in regulating FinTech, including its New Bank Start-up focusing heavily on small business lending protections, consumer fairness and Unit initiative and issuance of privacy concerns. However, North American’s regulatory position is evolving. licences to mobile-only banks Atom and Tandem, now stand in In May 2016, the Competition Bureau in Canada began a market study into question for Europe as a whole. technology innovation in Canadian financial services to assess competitive impact and regulatory needs. During June 2016, both the Federal Trade Commission and the Office of the Comptroller of the Currency held public forums in Washington, DC, on cultivating innovation in FS, with a heavy focus on marketplace lending. These forums and studies ultimately are meant to spark a discussion similar to the European Banking Authority’s paper on consumer data and FinTechs, and they help to establish a regulatory framework for the industry. An effective means of better understanding the ever evolving RegTech landscape is by utilizing the DeNovo platform. DeNovo cuts through the FinTech noise to deliver proprietary content, insights and research married with access to a dedicated team of subject matter experts to help understand and design better business strategies built on innovation. The changing landscape 4 How to use RegTech and make regulatory compliance your strategic advantage