An article titled RegTech Poised to Takeoff in Southeast Asia published by FinTech News Singapore on 15 Jun 2017 highlighted the great opportunity Southeast Asia has in harnessing the power and value of RegTech applications. Cynopsis Solutions gets a mention as one of the 3 Singapore-based RegTech companies helping customer in getting over the regulatory hurdles. The full article can be found here.
With increasing compliance burden in the financial services industry post GFC, major global institutions are finding it increasingly difficult to keep throwing bodies at the problem of compliance with regulatory penalties that simply won't go away.
Whilst we agree with the general theme of the article, we would go a little further to promote that RegTech solutions should not just be confined to the whims and fancies of the large banks and FIs. In fact, there are real immediate and tangible benefits that can be reaped by smaller financial institutions as well as non-financial institutions to help them get over various regulatory hurdles especially in areas of AML/CTF.
In an article by Deloitte titled RegTech is the New FinTech, it named Agility, Speed, Integration and Analytics as 4 key characteristics of RegTech.
When compared to the more traditional large technology vendors that people have been using over the last decade, the Deloitte article note that "the key difference between traditional solutions versus the RegTech era solutions is simple - agility. Whilst traditional solutions are robust and designed to deliver on your speci ed and “locked down” requirements, they can be in exible and require developmentor con guration in a proprietary language for enhancements or changes. In addition the well-known brand name vendors’ commercial models are typically aligned to multiple module purchases, meaning that the full bene ts of a solution will only be realised when using multiple modules or “bolt-ons” of the preferred platform. Add in high price tags and significant lead times for change and it is clear that an agile alternative is required."
It went on to further analyse the other benefits of RegTech solutions as typically cloud based. RegTech solutions using the cloud means that data is remotely maintained, managed and backed up. Cloud based solutions provide the key advantages such as Cost – you pay for what you use, Flexibility – customised control over data, access to and sharing of data, Performance / Scalability – ability to easily add or remove service features, Security – data encrypted during transmission and while at rest.
There is certainly a lot of excitement in this space and we believe that there is real benefits to be reaped. We think that the benefits of RegTech noted in Deloitte's article when put together with the opportunity of RegTech in Southeast Asia in the FinTech News article somewhat paint a very nice picture for us heading into the future.
It gives us a lot of validation and confidence that we are doing the right thing and heading towards the right direction in delivering real value-add to our 800 plus users of our products.