In the sharing session hosted by SMU FinTech Club on 2nd July, our Head of Product and Compliance, Weixiong has delivered his rich knowledge and experience in the RegTech industry to the participating students, covering from the definition of RegTech and its future trends, to his personal journey in this fascinating industry. And we hope the session has broadened their perspectives and inspired their future careers.
Weixiong started off the session with his insightful answer to the very first but fundamental question, which was “What is RegTech?” RegTech refers to the use of evolutionary technology that assists Financial Services Industries participants better comply with ever-changing regulations. He later painted a more explicit landscape by revealing some characteristics of RegTech, that include some key words including digitalization, data analytics, and some technical terms like API, that are all some big concepts RegTech pivots around.
Before Weixiong continued to elaborate on the broad use of RegTech across different sectors, alongside with their respective current challenges, he gave a brief introduction to the regulators, for instance, the Monetary Authority of Singapore (MAS), setting up boundaries to guide Financial Institutions (FI) and Non-FIs to be compliant. Speaking of the financial sector, we, at Cynopsis Solutions are constantly guiding banks and other financial institutions into an era of digitalization as they are facing difficulties bringing their existing legacy system to an end. On a contrary, we are assisting FinTech startups that are experienced in technology but lacking regulatory standpoints to better comply with regulations. Despite the comprehension of different markets, the development of RegTech is moving towards a consistent direction of workflow automation that will continuously eliminate more manual processes and ultimately replace a company’s manual compliance function with artificial intelligence.
Looking at the future of RegTech 5 years from now, the industry is anticipated to grow to an estimated size of USD55 billion by 2025 according to Bloomberg. Since RegTech is composed of technology and regulations, Weixiong also gave the students detailed guidance on Singapore’s complex regulatory framework. A profound issue raised afterwards was that in order to catch up with the pace of the evolving world of regulations, this will eventually lead to decreased efficiency and happiness. In the past, the compliance officer would typically possess the role of ATM that stands for Advisory, Training & Monitoring, but later with the introduction of RegTech, the original ATM transforms to a new definition that represents Analytics, Technology and Machine Learning. From a compliance point of view, the adoption of RegTech solutions empower you to ease the pain of keeping track of the ever-changing regulations and in step enhance work efficiency.
At the end of the session, Weixiong had all the participants follow him through the adventurous journey of our company, Cynopsis Solution in the past 7 years, and answer some questions that the students might have with regards to this industry. Hopefully all the participants have gained a lot both professionally and spiritually from Weixiong’s informative sharing!
About Cynopsis Solutions
Founded in 2014 and headquartered in Singapore, Cynopsis Solutions offers RegTech solutions designed to digitise and automate Compliance and regulatory processes, in particular know-your-customer, anti-money laundering, and counter-terrorism financing. Cynopsis Solutions’ accolades include MAS FinTech Awards (2018), RegTech100 (2018, 2019) and Financial Times Top 50 High Growth Companies in Asia-Pacific.
Our end-to-end KYC/AML solutions are designed according to the global FATF recommendations, applicable to more than 180 jurisdictions and is already helping more than a thousand B2B customers in the Banking, Financial Services, FinTech and Cryptocurrency, Professional Services and Gaming sectors globally.