Matthew Jones’ Post

This time last week I sat on a panel a the Suade Labs and City of London Corporation London RegTech Forum. We were discussing the development and evolution of the industry sector. Here are some of my reflections, gained through the last six years researching the industry in my role at RegTech Associates: 🚀 Growth The global RegTech market continues to grow, with new solutions emerging to solve new regulatory problems. The UK has 265 home grown RegTech firms, and is the third largest market (following US and continental Europe). The market is maturing, with over 90% of companies founded more than five years ago. 📈 Trends With a maturing market comes consolidation - and we are seeing three main methods. Huge, incumbent players are acquiring younger RegTechs - Nasdaq recently acquired Adenza for $10.5bn. Private equity has also entered the RegTech sphere, with Stellex Capital buying Fintellix and G2 Web Services from TransUnion. We are also seeing consolidation within categories - Corlytics and Clausematch coming together, for example, to extend functionality. 🔥 Hot areas Whilst there is less investment funding around and it is taking longer to raise, some areas are still seeing momentum. ESG, Financial Crime and Conduct come to mind. 👹 Threats A shortage of digitally savvy talent in risk and compliance functions can inhibit the adoption of this enabling technology - we need to train our compliance officers to understand technology and how it can help them to do their jobs more effectively In some areas of the market, there is an oversupply of solutions and a high degree of competition - not everyone will survive. Incumbent players are not standing still, and have the brand names and sales machines to compete - they also have bigger war chests for potential acquisitions. 😀 Opportunities New risks are always emerging, old risks do not disappear and both require new thinking and new solutions - generative AI is one such area of promise. Regulatory change is not disappearing either - forcing regulated firms to think strategically about compliance can become more dynamic and only technology can help with this. 🧚♂️ One wish If I had a magic wand, I would like to see RegTech being used predictively, to move us away from the doom loop of crisis - new regulation - implementation - need for RegTech - new risk emerges - crisis. I belive RegTech has the promise to break this loop by getting ahead of risks so it become a preventative force. If you want to know more about the 1700 RegTech products we are actively tracking, you can sign up to Radar here: https://lnkd.in/ezi_kSzp #RegTech #compliance #innovation #finreg #risk

🇦🇺 It might be a bit soon to make firm plans, but if any of my Australian friends and connections are free in October, I'll be in Sydney from 14th to 20th 😁 In the meantime, please do vote for some or all of Biztech Lawyers' proposed sessions at SXSW Sydney - we've put ourselves forward to speak about a whole range of topics that we hope attendees will find interesting, and to host some drinks events too. Voting instructions below! 🙏 Steps to Vote: - Register for or login to SXSW Sydney Session Select here: https://lnkd.in/g5hR23Wb - Click the links below and hit the ❤️ button. 🍸 Sip Happens: the art of pour decisions (open mic) https://lnkd.in/gnS4SdtU 🌏 Global Gathering: Connecting Minds Worldwide https://lnkd.in/g9iyYxMU 🧠 Great Minds on Tap: Tech Trivia https://lnkd.in/gc8wHpxY 🚢 Charting a Course Through the Global Regulatory Seas: Cyber Security & Data Privacy https://lnkd.in/g7kcBnjh 🪖 Cyber War in the Age of AUKUS: Continuation of Politics by Digital Means https://lnkd.in/gXqPanTv 🌎 Go Big or Go Home: Scaling for Global Domination https://lnkd.in/gkvpemnX 💡 IP Aaaaarg! How to knock the value off your tech business in 5 easy steps https://lnkd.in/gD7dVH2F 🔒 Internet Safety: what action is being taken, and how can you comply with the new rules? https://lnkd.in/g9_wtDri 💰 Seize the Sale: How to Prepare Your Startup for Acquisition https://lnkd.in/g9TxRpZW 🤖 AI Red Flags: Regulation for Algorithmic Justice https://lnkd.in/gVmX4s96 Thanks! #sxswSydney

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There is no doubt that 2024 will see a number of regulatory and policy developments unfolding globally, particularly with respect to technology. In the article below, we've highlighted five key technology trends that will impact business operating in Africa and EMEA. Covington & Burling LLP https://lnkd.in/dqQKEFVz

Had the pleasure of listening in to an OECD.AI Workshop on "Digital technology and consumer product safety" with Will Creswell, Nozha Boujemaa, Finn Lützow-Holm Myrstad and John McNulty Very interesting discussion not only focussing on #cybersecurity but also #trustworthy #AI What becomes clear is that we mustn't only look at #performance but also #transparency so that consumers of digital services can make informed decisions. And while we have checklists and principles in place that companies can already follow today, we need ways of measuring #DigitalTrust. It is not enough for companies to declare that they are trustworthy, we need instruments to clearly show that a digital service provider takes #DigitalTrust seriously. Very glad to see that more and more companies are taking this issue seriously but a lot of work remains to be done. At the Swiss Digital Initiative we have developed such a tool with the #DigitalTrustLabel, the result of a multi-stakeholder and iterative process. It helps companies and consumers engage with #DigitalTrust. More information: https://lnkd.in/eEuE7JQR

We are in the midst of a defining era of innovation and strategy, and victory is crucial. Last month, #SCSPTech released “Vision for Competitiveness” to ensure success in the global tech competition. Read more about the importance of staying ahead here: https://lnkd.in/g6TQZWTW

Awesome to see some Phalanx coverage by TechCrunch! If you didn't get a chance to catch our Battlefield session you can watch it in the article below 🚀

I've been encountering a lot of curiosity in my network about RegTech and its transformative impact on businesses, particularly in enhancing customer experiences. Demystifying RegTech At its core, RegTech involves technological tools that assist businesses in meeting regulatory compliance. This can include digitising customer data, strengthening data security, automating compliance reporting, and employing AI and machine learning for precise incident detection. The relevance of such tech-driven compliance solutions has surged, especially after the Global Financial Crisis, which highlighted the consequences of unchecked financial activities. Why Opt for RegTech? Considering RegTech for your business involves evaluating factors such as cost, customer experience enhancement, and regulatory compliance ease. It's a strategic decision with far-reaching implications. Is RegTech Right for Your Company? Every company, irrespective of industry, must adhere to legal regulations. Directors are tasked with ensuring compliance, often guided by their industry's regulatory bodies. This is a universal business imperative. The Future with RegTech Navigating regulatory risks and maintaining compliance efficiently requires a harmonious blend of People, Operations, and Technology. Technology facilitates, but the people in your organisation bring this to life. Navigating the Evolving RegTech Landscape The global RegTech scene is constantly evolving. Success hinges on choosing technology solutions that not only meet your business's compliance needs but also align with customer expectations, tackling the complexities and costs of compliance in a fast-paced regulatory world. Join me for a chat to uncover the plethora of opportunities to do so at Seamless Asia in Singapore from 20-21 February 2024. Secure a time slot with me using the link below in the comment section #RegTechInsights #ComplianceInnovation #FinTechFuture #RegulatoryTechnology #DigitalCompliance #BusinessTransformation #TechTrends #RegulatoryInsights [Source 1: FINRA (2018). "Technology Based Innovations for Regulatory Compliance in the Securities Industry."] [Source 2: Deloitte (2019). "RegTech Universe: Discovering the RegTech in Financial Services."]

On 29 June, the Cyberspace Administration of China and Hong Kong SAR’s Innovation, Technology and Industry Bureau signed a memorandum of understanding that sketches out draft rules on safeguarding data flows in the Greater Bay Area. Our team share their insights on this development and contemplate "what's next?" in our latest #techinsight. #dataflows