The Future of Data Driven Finance: Financial Regulation, Data Regulation, and RegTech

Fifty years ago, banking was a relationship business. Bank managers collected information about depositors and borrowers from all sorts of sources, formal and informal. In recent decades, credit decisions have become far more data-driven, with companies like Amazon and the Alibaba-affiliate, Ant Financial, taking the lead in the U.S. and China. This paradigm shift in finance, however, is only just beginning. We are entering a period in which the leaders in finance will have to focus intensely on data and its analysis. Banks and traditional financial institutions around the world are in the process of building ever-more sophisticated IT systems … Read more

The True Potential of RegTech: Fostering Systemic Financial Stability

Two major challenges have arisen for financial services companies since the global financial crisis (GFC) of 2008.  On the expense side, post-crisis fines have exceeded $200 billion, and the ongoing cost of regulation and compliance has become massive.  On the revenue side, competition from new start-up companies may well put up to $4.7 trillion of revenues at risk.

The GFC accelerated the evolution of financial technology start-ups – or FinTechs – which in the last five years have attracted over $80 billion of investment capital. FinTechs run the gamut of new platforms for peer-to-peer lending, robo-advice, payments, credit scoring, and … Read more