Two years ago, few people had even heard the term RegTech. Today the sector is booming, with rising venture capital investment and a growing group of regulatory agencies that are directly driving change. It has become clear that we’re in the process of digitizing finance, and that therefore, we can — and must — digitize financial regulation too. For those interested in digital change in finance, this podcast with Jo Ann Barefoot, founder of the Barefoot Innovation Group, serves as a goldmine of insight, information, and inspiration. It’s also an urgent call to action.
One way of thinking about this is that RegTech is to regulation what fintech is to finance. Just as fintech innovation is profoundly changing financial services, RegTech innovation will revolutionize regulatory processes. In fact, they’re both being driven by some of the same people — tech innovators who came into the financial sector with fintech startups and when they got there, discovered the regulatory situation and said, in effect, “I can’t believe we do it this way.”
The technology already exists to do better. What we lack is the institutional and cultural capacity to leverage it. PJ Di Giammarino, JWG’s CEO and founder, describes this challenge as a mountain — an enormous, complex ecosystem of finance and financial regulation that looks completely different from different angles. To shift it to a holistic, scalable system, we’ll have to change the regulatory processes themselves, including that governments have to create uniform standards that enable frictionless connection and efficiency. Moving mountains isn’t easy, and his advice is to start small with concrete projects and small teams that have senior access, and then to connect these up with each other.
To listen to the podcast click here.
More information including a transcript of the podcast and links to the reference sites can be found here.