Table of Contents
1. The FedNow Service: A Game Changer for RTP
2. Growing Demand for Instant Payment Solutions
3. The Role of Open Banking and API Integration
4. Regulatory Support and Industry Collaboration
5. The Global Perspective: Lessons from Other Markets
6. Concluding on a New Era for Payments

In the move into 2024 and beyond, the financial sector awaits any revolution that has come in the form of RTP: Real-Time Payments. However, it is yet unknown to establish the flow of change with regards to technological breakthroughs, new rules and regulation, as well as changes in customers’ perception in the year 2024, which remains a significant year for RTP. Of all the accelerants that exist today, the most obvious is the FedNow Service that may take RTP mainstream.

1. The FedNow Service: A Game Changer for RTP

The FedNow Service was initiated by the Federal Reserve in July 2023 to be the first point of contact with the broader utilization of Real Time Payments in the United States. The service had been planned to enable year-round 24×7 instant payment services to the financial institutions in order to help them provide better and quicker payment services to their customers. This service provides what the need that the payment systems from each age have had; they are slow and do their work only when the fixed time is elapsed.

The introduction of FedNow is rather different to improving the infrastructure of the existing RTP and placing pressure on other players to innovate. That instant payments are available through FedNow to all the banks and credit unions makes it possible to reach more consumers and businesses. This has given RTP a push up especially for SMEs who may otherwise have to harness the use of slow means such as cheque payment before the technological enhancements.

2. Growing Demand for Instant Payment Solutions

Instant payments have been in high demand for a long time, driven by the increasing consumer and business expectations for innovation. Thus, such a possibility to transfer and receive money without any delay has become a key necessity of today’s fast progressive digital economy. Customers for their part are expecting more convenient, faster, and most especially secured modes of payment while on the other hand, merchants are in search for improved means of managing their cash flows and reducing on time spent on payment processing.
COVID-19 has turned into the power that is putting consumers and businesses at the forefront of experimentation with new payment technologies. This change is supposed to be one that will eventually shift choices in payments to where the seller and buyer will accept or prefer real-time payments. On the other hand, RTP transaction statistics are progressing, specifically in the United States. ACI Worldwide claimed that RTP transactions have doubled in 2020 and will continue at an approximate CAGR of 43.4% during the years ahead, according to the TerraPay data up to 2025.

The growth of mobile money accepted for banking and even payments enhances the request for instant payments. The real-time payment solutions for consumer use, including the mobile wallets, the peer-to-peer (P2P) payment applications, and similar are becoming more popular especially among the younger generation. Further, as consumers get used to the immediacy of the payments, the demand on the businesses and the financial institutions to provide RTP solutions will continue to grow.

3. The Role of Open Banking and API Integration

The tipping point established for RTP in 2024 is also influenced by the advancements in open banking and API integration. The open banking approach that is enabled by data sharing between the institutions and application developers is contributing towards the development of fresh value added propositions in the payment arena. Using APIs, RTP can easily be incorporated into the financial institutions’ solution portfolio hence making it easier for customers to pay.

It also allows opening new opportunities to create payments solutions that would have reasonable and specific to particular industries and customers’ requirements. For instance, companies can employ APIs to some of the payment processing, so as to enhance efficiency when conducting transactions. Such level of personalization and adaptability is likely to spread RTP even further, during the periods when a certain level of flexibility is necessary to remain viable and competitive in the market, particularly for businesses.

4. Regulatory Support and Industry Collaboration

RTP’s success is also being backed by regulatory endorsement and partnership with other industry players. In America, for instance, the Federal reserve has gone further in ensuring that faster payments are adopted across the economy. The FedNow Service is one of the many government-led efforts to upgrade the payments’ system and to encourage the use of RTP.

In addition, the collaboration of industries is giving a significant contribution in the development as well as the growth of RTP networks. Major financial institutions, technology vendors and payment processors are purposefully developing RTP solutions that are compatible with each other so that they can be integrated on different systems. This is important to transform RTPs’ technical and operational infrastructure and to promote RTP ubiquity This collaboration is crucial for RTP proliferation, and for addressing the main technical and operational barriers to real-time payments.

5. The Global Perspective: Lessons from Other Markets

Although RTP is still at a relatively early stage of development in the United States, it is important to understand that other countries have found great success in this area. For instance, the Pix payment system was implemented in Brazil in 2020, by the country’s central bank and the system has since then featured massively with billions of transactions being conducted within the first year. The successful case of the PIX proves RTP’s ability to challenge existing payment systems and emphasizes the need for a sound RTP and its availability.

Likewise, the United Kingdom’s Faster Payments Service (FPS) has been a model for RTP implementation; it has been operating in real-time since 2008. The favourable experiences of FPS and other overseas RTP platforms may be critically helpful for the US market as it steadily constructs the RTP market in the country.

6. Concluding on a New Era for Payments

Thus, as we continue into 2024 the signs all point to RTP gearing up to become the next norm of payments in the United States. These forces include the growing needs for more immediacy in payments, the availability of the FedNow Service, the continuous innovation in open banking, and the support found within the regulations. The opportunity to invest in RTP is here today for all such businesses and financial institutions. They can thus be able to satisfy the needs of their customers, improve efficiencies as well as outcompete rivals by implementing real-time payments.
The year 2024 is not the next evolutionary step in payments, but the dawn of real-time payment, the world where the majority of transactions are fast and frictionless.

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Table of Contents
Introduction
Avoid Financial Woes to Maintain Business Stability
1. Nomentia
2. Kyriba
3. SAP
4. TIS
5. Omikron
Winding Up

Introduction

Efficient liquidity management guarantees long-term funding as well as short-term cash flow to satisfy financial obligations for organizations planning to maintain a healthy cash flow for success and stability. As many firms face expenses such as bills, loan repayments, salary disbursements, wage payments, etc., businesses need a complete picture of their global cash and accurate forecasts to support strategic decisions at the right time and place.

Avoid Financial Woes to Maintain Business Stability

Given the fluctuating market conditions, especially with the ongoing banking crisis such as inflation, an increase in interest rates, and the ripple effect of SVB’s failure since 2023, the liquidity position of a business can change rapidly. Proactively managing liquidity is essential, and that’s when Treasury teams play a critical role in supporting global growth and protecting financial assets, often with limited infrastructure and resources.

In recent years, banking institutes have relied on liquidity management solutions (LMS), which automate processes by consolidating all liquidity data from various sources. LMS is a savior for treasury and finance teams that can make quick decisions based on liquidity analysis.

Moreover, having a robust cash management software solution in place also helps maintain financial stability, resilience, and excess cash returns while minimizing funding costs and disruptions. Prioritizing liquidity management can protect finances and prepare businesses for long-term success, even in the face of volatile markets. Every company hoping to stay out of debt and succeed in the long run needs to put time and money into this essential discipline.

By adopting robust liquidity management practices, businesses can:

• Meet day-to-day expenses and obligations on time.
• Capitalize on investment opportunities as they arise.
• Weather economic downturns or unexpected events
• Maintain the trust of suppliers, lenders, and other stakeholders.

These solutions give an immediate insight into the liquidity positions and forecasts by speeding up the decision-making process.

Yet with many tools and software, it can be difficult to find the right liquidity management provider. To gain a deeper understanding of the treasury software arena, Fintec Buzz has sought out the out the top five liquidity solution providers that will help you with a technology comparison overview.

Here are five leading solution providers that strategically put liquidity to work.

1. Nomentia

The first liquidity management solutions (LMS) platform on our list is Nomentia, which offers treasury and cash management solutions to over 1,400 customers across Europe. Nomentia provides instant visibility into the current cash positions throughout the organization, even across all regions, providing consolidated cash flow data from different source systems, such as banks and ERP systems. It also provides services to small and medium businesses by integrating the extra services of onboarding and customer service.

2. Kyriba

Kyriba, headquartered in the financial capital of the world, offers a leading global cash management solution. The platform provides comprehensive, user-friendly capabilities, delivering timely and accurate global cash visibility across all banks and regions. This enables Treasury teams to create precise forecasts and gain insights into global cash positions across multiple systems. Additionally, a dedicated report summarizes all data in a worksheet, providing accurate foundations for forecasts. Kyriba is one of the most intuitive LMS modules for finance and Treasury teams.

3. SAP

SAP’s treasury management solutions, integrated into its extensive ERP system, offer global-scale liquidity management capabilities. Headquartered in Germany, SAP combines data from various systems to provide a quick overview of your liquidity position within the application. However, SAP is resource-intensive and often requires specialized technical consultants for implementation and maintenance. This comprehensive approach ensures that you receive a precise status overview while benefiting from SAP’s robust cash management solutions.

4. TIS

TIS, headquartered in Germany with offices worldwide, offers cash and liquidity management solutions through its broader treasury management system. It is an award-winning cloud-based software and service platform that optimizes cross-border and domestic payments, bank connectivity, cash forecasting, fraud prevention, and payment compliance. With exceptional client service, TIS helps businesses of any size or industry enhance operational efficiency, reduce risk, manage liquidity, gain strategic advantages, and achieve global payment optimization.

5. Omikron 

With over 30 years of experience in the financial sector, Omikron Systemhaus is a leading multi-banking standard software provider managing financial businesses for corporate clients. For corporations, Omikron is a modular, bank-independent platform that optimizes payments and cash management processes and workflows. A key benefit is the seamless integration of banking connections with various in-house systems like ERP and Treasury, available in more than 20 countries and in 14 languages.

Winding Up

We are well aware that in the 21st century, every company faces issues of liquidity from holding surplus cash to generate more incoming payments. Therefore, to simplify cash and liquidity more effectively, the above liquidity management solutions providers will help you analyze your current position and improve cash flow, ensuring long-term success.

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Table of Content
Introduction
1. FinTech Executive Education Program
2. Chief Financial Officer Executive Education Program
3. Fintech: Innovation and Transformation in Financial Services
4. The Chief Financial Officer Program
5. Fintech Revolution Executive Education Program
Conclusion

Introduction
The digital landscape continuously evolves, and learning new technologies, especially in the financial sector, has become a cornerstone for financial analysts seeking to enhance their skills and stay ahead of the competitive market. Recognizing the need for upskilling, FintecBuzz presents an exclusive compilation of the best five FinTech courses and certifications of 2024. These courses employ various disciplines, from investment advisory and lending to blockchain and DeFi, empowering you to boost your resume and credibility.

1. FinTech Executive Education Program
The FinTech Executive Education Program is a formal certification from Harvard Business School that will provide senior business decision-makers, top management, bankers, and finance professionals. The course suggests real-world case studies prepared by experts to help professionals understand the trending concepts of fintech. It also emphasizes the importance of financial regulations, the evolving financial strategies of start-ups, and the rapid change in traditional institutions.

2. Chief Financial Officer Executive Education Program
The CFO education program was launched by the faculty members of Columbia Business School and is specially designed for financial leaders to develop knowledge and skills to alter their profile as chief financial officers. This course provides a core curriculum to kick-start a career journey in finance through study materials, live online sessions, and networking events. Further, it provides a flexible learning journey that works as a learning guide and offers real-world case studies on financial leadership and decision-making.

3. Fintech: Innovation and Transformation in Financial Services
The FinTech program by the National University of Singapore is designed for financial managers and consultants interested in driving innovation and developing effective solutions for their organizations. The course explores the latest technologies and techniques that financial professionals can leverage to enhance financial service daily and for long-term growth. This 2-month program will also provide professionals with a better understanding of the trends in FinTech and enable them to utilize all the knowledge to make calculated and profitable decisions.

4. The Chief Financial Officer Program
To expand knowledge and brush up skills in the financial sector and become a chief financial officer, this fintech program at London Business School is the right option. This extensive course will provide professionals with an understanding of subjects such as the business of AI, innovations in the digital world, strategic thinking and leadership, and monitoring performance that will help them improve financial decision-making.

5. Fintech Revolution Executive Education Program
The Fintech Revolution from Wharton is a business-focused and practical course where executive-level financial professionals can apply different fintech tools that will improve the way financial businesses operate and perform in the digital world. The course is very structured and directly focuses on reducing transactions and service costs, understanding economies of scale, tapping new markets in different regions, and improving services through digital delivery. It also covers the latest trends in digital payments, digital transformation, marketplace lending, AI, insurtech, real estate tech, regulation, and blockchain tech that can evolve the business world forever.

Conclusion
While traditional degrees are still valid, employers look for certified financial professionals who have their certifications from famous institutes. The above certification courses on financial technology are proven to help acquire new skills and brush up on existing ones. However, before selecting the right course, professionals should understand the current fintech trends and plan out their professional goals to align their future careers.

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1. Sustainability Matters
2. Banking on Sustainability
3. How Green Finance Shapes Banking’s Bottom Line
4. Steering Society Towards a Greener Footprint
5. Banking’s Green Horizon Shaped by the Next Generation
6. Exerting Eco-Influence
Final Thoughts!

A carbon footprint quantifies the greenhouse gases emitted through daily human activities, making its reduction pivotal for environmental sustainability. Decreasing it significantly benefits the environment, while its escalation exacerbates environmental degradation. This transition to sustainability has a ripple effect on all other sectors, including banking. Banks are progressively including sustainability principles in their operations, which thus transform lending and borrowing into steps towards a sustainable future.

The idea of net zero emissions is that any anthropogenic greenhouse gases released into the atmosphere are returned to the environment to achieve a balanced climate. Banks have adapted the concept by taking actions not only to lower the carbon emissions in their operations but also those of the companies they finance. On top of that, quite a few financial institutions are striving to be carbon-neutral by 2050. They have set their target; this is certainly proof of their devotion to climate change mitigation.

1. Sustainability Matters
Sustainability is the key to protecting and regenerating our planet; it demands the strong involvement of all the players. All the time that environmental issues have been receiving the back seat needs to be readdressed. Corporations and financial institutions should be at the forefront of this remarkable journey towards sustainability. Sustainability is not simply a matter of opinion anymore; it has become an evidence-based requirement and a common societal norm accepted by everyone. Consequently, the concept spreads into all aspects of daily life. From personal eco-friendly choices, e.g., saving water and generating less waste, to certain guidelines like the Paris Agreement and initiatives such as the UN Sustainable Development Goals and the EU Commission’s Green Deal, sustainability has become an imperative supporting societal advancement.

The global shift towards sustainability is consistent with its transformative power, which broadly has implications within environmental, social, political, and economic areas. Such a shift in mindset not only undermines the existing norms but also brings about the creation of new strategies and structures. Environmentally-oriented sustainability forces the financial sector to question conventional practices and fosters emerging strategies that ensure ecologically sound values and long-term sustainability goals. With sustainability gaining more and more attention and shaping discussions and actions globally, it heralds a new era bursting with collaboration and innovation, where people band together and bring forth the path to a better future.

2. Banking on Sustainability
Long-term sustainability for the banking sector involves integrating environmental, social, and governance (ESG) criteria into traditional banking practices, as outlined by Deloitte. By prioritizing ESG benefits, banks can contribute significantly to a sustainable and zero-emissions world. This philosophy requires a serious commitment from the banking industry, as it entails aligning financial activities with long-term environmental and societal goals.

This, however, can only be achieved by the banks taking the lead in embracing sustainable practices in their operations and subsequently passing the philosophy on to the customers. This generally means channeling resources into green businesses that produce environmentally friendly products and services, thereby fostering economically sound practices that are also friendly to the environment. Moreover, banks have considerable authority in the lending process, and as a bank, they can leverage this power to motivate companies to adapt sustainable practices by making sustainability criteria an integral part of loan approval. Therefore, by engaging in these combined measures, the banking sector can become the catalyst for the transition to a more sustainable future.

3. How Green Finance Shapes Banking’s Bottom Line

The transition towards green finance is gaining traction within the banking sector, driven by the recognition that it aligns with both ethical imperatives and profitable outcomes. While there may be short-term adjustments impacting their bottom line, banks increasingly understand that embracing sustainability is a strategically sound decision with long-term benefits. Despite lingering perceptions in some policy frameworks that sustainability lacks revenue-generating potential, recent findings, such as those from the GABV report in 2020, underscore the financial advantages of catering to green customers. Banks embracing green finance are witnessing higher returns on investment, equity, and assets compared to their counterparts adhering to outdated paradigms. As green finance gains momentum, it reaffirms its viability and effectiveness in driving both environmental stewardship and financial prosperity.

4. Steering Society Towards a Greener Footprint

The importance of climate change risk management relates to the significance sustainability has for banks. Banking, being the primary source of finance for a diverse range of organizations that range from small and medium-sized enterprises (SMEs) to multinational conglomerates, has a principal influence over the whole economy. Their capital expenditures are at the center of the world economy’s direction. Therefore, where banks allocate their resources holds significant implications for both economic development and sustainability initiatives. Ultimately, these decisions will shape the societal landscape for future generations, emphasizing the profound impact of banking practices on the future well-being of our planet and its inhabitants.

5. Banking’s Green Horizon Shaped by the Next Generation
Incorporating sustainable principles not only aids banks in attracting younger customers but also cultivates a socially conscious workforce poised to become future management executives. The demographic aged 20 to 30 increasingly seeks products that align with environmental values, making initiatives like cashback on eco-friendly purchases particularly appealing.

In addition, a bottom-line dedication to sustainability is something these young generations are attracted to and, also, acts as an attraction for a community that is socially responsible. Not only do sustainability-driven banks meet the rising consumer demand but also create a base for a flexible and forward-thinking future, assuring their prosperity in a rapidly-growing environmental marketplace.

6. Exerting Eco-Influence
Banks have shifted their lending practices to include thorough assessments of environmental criteria before approving loans for companies. They scrutinize not only the company’s past performance but also its workplace practices and future green strategies. Failure to meet these criteria could result in loan rejection, exerting significant pressure on companies to adopt clear sustainability plans. This strategic thinking leads to increased consideration of environmental aspects, resulting in enhanced sustainability practices now and in the future.

Long-term sustainable financing is also an integral part of the emerging trend where banks are not only using insights from customers’ spending habits. With the help of comprehensive data, banks now have the ability to identify which customers would be suitable and who would be interested in investing in their projects. Thus, investment in green projects would be spurred. This proactive approach is not just in line with the socially and environmentally desired goals but also enables the creation of a sense of community for the customers, fostering their loyalty to the bank. However, by prioritizing sustainable funding, banks not only play a role in the preservation of the environment but also help create better relationships with clients and ultimately build an ecosystem where financial and environmental sustainability concepts are combined for everybody’s benefit.

Final Thoughts!
Green finance in the banking sector is a significant step in combating climate change and promoting sustainability. Financial institutions are moving green, making their clients care about the environment, and using their customers’s data to invest in sustainable projects. This achievement not only draws customers who care deeply about the environment but also creates a staff that is socially responsible, guaranteeing sustainable development. Banks that prioritize sustainability are not only limiting climate risks but also creating a more resilient future. This change underlines the feasibility of financial prosperity together with sustainability, showing the importance of banks in the process of global sustainability.

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Table of Contents

• Introduction
• 1. Importance of Open Banking
• 2. Uses of Open Banking in the BFSI Sector
  • 2.1. Personal Finance Management
  • 2.2. Investing & Wealth Management
  • 2.3. Bill Payment
  • 2.4. Buy Now, Pay Later
• Conclusion

Introduction

Open banking refers to banks and other financial institutions that open data for third-party service providers to use, access, and share. Third-party service providers get access to the financial data of customers, like statements and transaction records, which generally belong to bank customers. However, this data can only be shared at the request of customers. So, open banking also comes with a strong technological infrastructure and legal framework to make sure the data is not leaked to cybercriminals.

In this article, we will talk about the importance of open banking and the application areas in the banking, financial services, and insurance (BFSI) industry. It would be a continuation of a previous article where we focused on how open banking works in different regions across the globe.

1. Importance of Open Banking
Open banking isn’t just solving major banking problems; it’s also sparking competition and innovation in the financial sector to create better products and service experiences for customers.
According to a global survey, 60% of consumers are interested in open-banking experiences, as they can access their information online and do not have to visit banks or financial institutes for monetary transactions. Not only that, the whole process of monetary transactions can be processed in a few clicks; thus, customers no longer have to wait in long queues.

Open banking has become a global phenomenon as each country is finding out how this data-sharing process would help them. According to a report by the World Bank, SMEs represent 90% of businesses and 50% of employees worldwide; however, post-COVID, these enterprises are pushing for digitalization strategies to work properly. So, SMEs have started implementing several new technologies, like AI automation. Open banking, open finance solutions, and more to streamline proper growth and balance the country’s economy. Some countries have already started enforcing open banking regulations, whereas others have yet to kickstart their journey.

2. Uses of Open Banking in the BFSI Sector

Here are four possible use cases of open banking in the BFSI sector:

2.1. Personal Finance Management

Open Banking has transformed the way customers and businesses manage their financial data from their accounts, like current, savings, investments, loans, insurance, mortgages, pensions, and loyalty. It is a one-stop shop for budgeting advice and personalized recommendations. Open banking fosters automation in business processes like billing, invoices, and accounting by eliminating manual entry of data.

2.2. Investing & Wealth Management

Before advising the right investment based on the customer’s capacity and risk appetite, digital wealth managers may obtain more insight about their client by utilizing Open Banking standards. Additionally, they may transfer funds at lower prices between the customer account and the bank by utilizing the Open Banking rails.

2.3. Bill Payment

Open banking offers billing and payment options for customers and billers. With the help of APIs, billers can send bills directly to customers’ bank accounts to gain their trust and loyalty.

2.4. Buy Now, Pay Later

The BNPL (By Now, Pay Later) method needs a banking system to verify customers’ identities, financial records, and verified documents to make lending decisions. With the help of open banking, customers can give consent to the lenders accessing their data to grant and process loan applications and create approvals.

Conclusion
Ultimately, open banking allows financial institutions, banks, and third-party service providers to offer more streamlined and customized experiences. This method of payment has been widely enacted in many countries, which will empower consumers to take control of their money and aid them in making informed financial decisions.

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Table Of Contents

Understanding RegTech

1. 1. Relationship Between RegTech and FinTech
2. 2. Use Case of RegTech in Banking and Financial Services
3.     2.1. Identity Verification and Management
4.     2.2. Regulatory Reporting and Case Management
5. 3. RegTech Companies
6.    3.1. Ascent RegTech
7.    3.2. Socure
8.    3.3. Hummingbird
9. 4. What is the Future of RegTech?

To sum up

Understanding RegTech

RegTech is a tech management regulatory body that operates processes within the financial industry with the help of technology. These RegTech companies solve financial problems for top-level financial professionals in a technology-driven economy through automation. With the use of big data and machine learning technology (ML), RegTech reduces the risk to a bank or financial institute’s compliance department by offering data on numerous activities that were previously conducted traditionally. However, in today’s article, we will focus on how the RegTech industry collaborates with financial institutions and regulatory bodies to ensure a seamless security process.

1. Relationship Between RegTech and FinTech

RegTech and FinTech are two distinct industries that have a beneficial relationship. The growth of FinTech entities like banking, non-banking services, and financial entities has led to the emergence of RegTech solutions to help them comply with regulatory requirements. RegTech companies specialize in providing technology solutions that help financial institutions by offering to monitor compliance in real-time, reduce the expense of compliance, and improve the accuracy and effectiveness of compliance actions. Thus, the relationship between RegTech and FinTech is mutually beneficial and expects to evolve and grow stronger continuously.
While RegTech solutions focus on helping, managing, and adhering to regulatory requirements, they still cover a wide range of use cases in the financial sector. Let’s take a look at a few of them.

2. Use Case of RegTech in Banking and Financial Services

RegTech has a wide scope of use cases and applications in the financial industry, starting from identifying and verifying customers to monitoring and screening transactions. Let’s take a few of the most common use cases of RegTech in financial services:

2.1. Identity Verification and Management

Digital identity verification is an essential part of any modern banking or financial institution, as they use a data set that includes name, address, date of birth, and personal information about an individual. Here, the RegTech software collects, stores, and verifies the data using KYC/KYB procedures to ensure the individual’s real identity. There are a few RegTech tools as well that can analyze your customer’s written documents and oral speech for a multi-step verification process.

2.2. Regulatory Reporting and Case Management

In the past, financial professionals have seen that it is difficult to maintain hard copies of all transactions and documents. Thus following regulations by regulatory institutions was difficult which made

3. RegTech Companies

RegTech solutions are becoming ever more critical to banks and other financial institutes, which are looking for companies that ensure stability in today’s world. Here are three companies helping unlock RegTech possibilities:

3.1. Ascent RegTech

Ascent RegTech, a leading global regulatory compliance company that uses market-leading RegulationAI, helps customers in financial services automate their compliance programs, significantly reducing their risk while saving time and money.

3.2. Socure

Socure’s RegTech services are used in an array of industries, from finance to gaming as it has a predictive analytics platform that applies AI and ML techniques with trusted online and offline data intelligence from email, phone, address, and IP, to confirm identities in real-time.

3.3. Hummingbird

Hummingbird is an anti-money-laundering platform used by banks and other financial entities that aims to reduce paperwork, provide insightful analytics, and enable collaboration between compliance professionals and law enforcement agents.

4. What is the Future of RegTech?

The future of RegTech involves automation and simplification across all organizations and industries. However, RegTech is constantly evolving in the financial sector as banks and financial institutes are developing new and innovative products and services that need new regulations, which implies an increase in compliance costs. Financial service providers are therefore investing in intelligent RegTech solutions that provide modern solutions and reduce the cost of regulatory compliance. For instance, HSBC alone spent $2.2 billion on regulatory and compliance activities in the first nine months of 2015. In the same way, financial institutions’ overall compliance expenses are predicted to increase annually to $120 billion over the next five years.

To Sum Up

The RegTech segment is maturing and currently, every regulatory technology is on its way to transform it more digitally. RegTech adoption in the financial sector is receiving a lot of attention, but these solutions can benefit many businesses in a variety of sectors by helping them effectively drive their business and comply with regulatory requirements.

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