Fintech Trending: RegTech Reality Check, Blockchain Bandwagon, and IBM’s New Wallet

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Hat, courtesy of Alloy, a customer-onboarding specialist that debuted at FinDEVr in October.

The dream of RegTech is alive at Finovate

Deloitte recently asked what we should make of regtech in a new report titled, “RegTech is the new FinTech: How agile regulatory technology is helping firms better understand and manage their risks.” To the extent that regtech represents technologies, strategies, and solutions designed to help firms better meet regulatory obligations, remain compliant, and/or secure their processes, there may be less new here than meets the eye. Compared to insurtech, regtech firms have been prominent players in the fintech firmament for years.

To its credit, Deloitte is aware of the “old-is-new-again” aspect of regtech. The report notes that “while the name is new, the marriage of technology and regulation to address regulatory challenges has existed for some time with varying degrees of success.”

Indeed. Consider companies like Gremln (F14), which demonstrated a social media platform specifically for regulated industries, and Finect (F13), which unveiled a compliant communication platform for financial professionals. Qumram (F16) provides software that helps ensure complaint communication by recording digital interactions from web, social, and mobile channels.

My Virtual Strongbox (F14) introduced the kind of secure document-storage technology that can help FIs better manage customer documentation. Global Debt Registry, another F14 presenter, provides compliance and risk-management solutions to the account-management industry. OutsideIQ (F16) enables FIs to uncover regulatory risk using a combination of machine learning and human analysis. FundAmerica (F15), arguably one of the most explicitly regtech companies to demo at Finovate, provides crowdfunding platforms with APIs for a wide variety of “mission-critical, back-end regulatory requirements.”

Additionally, there are a sizeable number of credit risk analysis innovators such as QCR (F15), CreditHQ (F16), and FICO (FD16); companies like Avalara (FD15) that help merchants recognize and satisfy sales-tax requirements (or by that token, even a VATBox (F15) that helps recover VAT fees for international travelers); and cloud-based auditing technologies like those available from Auvenir (F16), whose identity as a fintech company was a topic of our deliberations.

And all of this is to say nothing of the even larger number of security and authentication specialists whose technologies—at least by Deloitte’s definition—can be considered regtech. Note that Deloitte’s Ireland-based rundown of regtech companies includes Finovate alum Trustev (F14), whose online ID-verification technology is very much in the same category as dozens of other security, authentication, verification, anti-fraud innovators.

The question as to whether regtech as a “thing” (as the millennials say) can be separated from the broader fintech discussion is likely more of a marketing decision than anything else. Clearly regtech has the ranks; the issue is to what degree does distinguishing them as a type of innovator apart from the larger fintech world make it easier for these companies to attract top talent, develop necessary solutions, and raise the capital to drive and grow their businesses. From the perspective of fintech in general—and Finovate/FinDEVr in specific—we’re happier having regtech innovating from “inside the tent,” as opposed to being outside the tent trying to find a way in.

See also:

Blockchain bandwagon

Two more major players jumped on the blockchain bandwagon. IBM (FD16) showed its Hyperledger at FinDEVr last week and Visa (FD14) announced its cross-border payment system built on blockchain-like distributed ledgers, an apparent challenge to Swift. The technology is powered by Chain (FD15) which counts Visa, Capital One (FD15) and Citibank as investors. According to Javelin Strategy, banks will invest $1 billion this year in blockchain initiatives.

Mobile payments gets another huge player

Speaking of IBM, one of the more surprising announcements at Money2020 was the launch of IBM Pay, a private-label mobile payments and POS system. Details are sketchy, but in the IBM video below, it appears to be a Starbucks-like QR code system. It’s part of IBM’s Watson Commerce initiative.

FinovateSpring Sneak Peek: Auvenir

Auvenir_homepage_May2016

FS2016-wdateA look at the companies demoing live to 1,500+ fintech professionals on May 10 & 11. Register today.

The passionate team behind Auvenir is driven to significantly increase trust and confidence in capital markets with a learning, adaptive platform for excellence in assurance, due diligence, and auditing.

Features:

  • Intuitive and adaptive user experience
  • Convergence of exponential technology on cloud-based platform
  • Empowers auditors and other risk assessors with a complete and clear picture of complex businesses

Why it’s great
An intuitive, web-based platform, designed to scale using converging technologies to provide sophisticated machine assistance to client, auditor, and other risk assessors.

Presenters

Auvenir_PeteMyersPete Myers, CEO
Myers is a seasoned entrepreneur with over 18 years of experience building and transforming small and medium-sized businesses into successful enterprises.
LinkedIn

 

 

Jon Felske, CTOAuvenir_JonFelske
Felske has 16+ years of experience in developing technology and working at the cutting edge of R&D in the telecom industry and startup world.
LinkedIn

 

 

Auvenir_EziahSyed

Eziah Syed, Adviser
Syed has 20+ years experience in innovation, new products, new ventures, and white space growth opportunities with a particular focus and emphasis on technology products.
LinkedIn

Finovate Alumni News

On Finovate.com

  • “Zooz Raises $24 Million in its Largest Funding”
  • “Fiserv and INETCO Team Up to Enhance ATM Management”

On FinDEVr.com

  • “What’s in a Name? Plaid Earns “Cool Vendor” Status from Gartner”

Around the web

  • U.K.’s oldest bank, C. Hoare & Co, goes digital with Backbase.
  • “Crowdfund Insider: CAN Capital Forms Agreement with Entrepreneur to Provide SME Loans”
  • Huffington Post names Tactile Finance on its list of 15 women-led startups to watch in 2016.
  • Qumram opens offices in London and San Francisco. See Qumram at FinovateSpring in San Jose next week.
  • Core banking solutions from Wipro to power Paytm’s new payments bank.

This post will be updated throughout the day as news and developments emerge. You can also follow all the alumni news headlines on the Finovate Twitter account.

From Bay Street Labs, Auvenir Transforms the Way Financial Audits Are Performed

AuvenirThis post is part of our live coverage of FinovateFall 2015.

The team from Auvenir makes its way to the stage.

Auvenir transforms and democratizes financial audits, enabling every auditing firm of every size to perform audits with the highest quality and efficiency. The intuitive web-based platform provides machine assistance to both client and auditor to accelerate the audit process and deepen intelligence for higher quality.

From staffing, to workflow, to automation and advanced analytics, Auvenir is the world’s most advanced and complete auditing platform.

Presenters: Peter Myers, CEO and co-founder; John Felske, CTO and co-founder; and Eziah Syed, co-founder

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Finovate Alumni News

On Finovate.com

  • “Last Call! FinovateFall Tickets Going … Going … “
  • “FinovateFall 2015: Mapping Fintech’s International Neighborhood”

Around the web

  • The Forrester Wave: Omnichannel Banking Solutions report recognizes Backbase as leader.
  • BizEquity signs contract with Security Mutual Life Insurance Company of New York.
  • North American retailer Newegg chooses Payoneer to simplify its cross-border payments.
  • Zopa and Nostrum Group earn spots on The Sunday Times Tech Track 100 roster.
  • Philippine bitcoin-remittance service Rebit teams up with mobile money-transfer specialist, ZipZap.
  • Let’s Talk Payments looks at Wealthfront and Betterment in a discussion on the effectiveness of robo-advisers.

This post will be updated throughout the day as news and developments emerge. You can also follow all the alumni news headlines on the Finovate Twitter account.

FinovateFall Sneak Peek: Auvenir

Auvenir_homepage_FF2015

The Sneak Peek series looks at the innovators demoing live on stage at FinovateFall 2015. Be sure to pick up your tickets to our annual autumn conference, and we’ll see you in New York!

Auvenir_logo_FF2015Auvenir uses advanced technology to transform how financial audits are performed, empowering auditors, enhancing quality/efficiency, and raising the trust and confidence in our financial markets.

Features of Auvenir:

  • Intuitive design for audit clients to easily prepare for financial audits
  • Powerful technology automatically confirms audit documentation
  • Auditors are enabled to focus more on professional judgement and deeper insights

Why it’s great
Auvenir will empower the auditor by augmenting 90% of the mundane tasks in a financial audit, significantly improving both efficiency and quality.

Auvenir_P_Meyers_FF2015Presenters

Pete Myers, CEO
A seasoned entrepreneur with more than 18 years’ experience building and growing diverse, small- to medium-sized businesses across the globe, Myers brings strategic leadership to Bay Street Labs.
LinkedIn

Auvenir_J_Felske_FF2015Jon Felske, CTO
Felske has over a dozen years of experience in developing technology, and working in R&D. A lifetime entrepreneur, he started his first company at age 14 and has been on the founding team of 6+ startups.
LinkedIn

 

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