Why RegTech won at SIBOS2023

Setting the scene

Reflecting on this year’s SIBOS conference, organized by SWIFT for the financial services industry, it was great to be networking and debating the future of the industry in person again in the fantastic city of Toronto.

C-suite executives from major financial institutions and leading technology companies were able to accelerate connections and build shared understanding, through a packed program of sessions and conversations delving into what’s new, what’s ahead, and the real hot topics. .

On the first day, RBC CEO David McKay set the scene by exploring key industry lessons learned over the last 12 months that the SIBOS community needed to think about:

1. How to address and respond to: complexity, cyber, AI, quantum
2. Liquidity – the velocity with which money had exited the US financial system; trillions in early 2023
3. How quickly confidence can erode –  a real wake-up call for bankers and regulators

A clear champion of innovation,  Dave discussed  harnessing the power of transformational technologies to deliver more value to clients through unique partnerships and the best and most personalized experiences possible This is something I also see the benefits of every day in my role at Encompass, as we help banks get the most out of their Know Your Customer (KYC) processes with dynamic process automation. The challenges around KYC, and Anti-Money Laundering (AML), particularly in the context of the current, fast-evolving regulatory landscape, were also a key consideration for most in attendance, with many insightful conversations taking place around common goals and issues.  

RegTech’s influence at SIBOS

This potential and future vision was reflected among the exhibitors. In particular a newer breed of technology firms in the form of RegTechs have an increasing presence and voice in conversations at SIBOS. Multiple vendors came to the fore to highlight their innovative solutions, and why the need for RegTech has never been greater, with a real buzz around the industry’s growth as topics were explored across the floor, including:

-          Role of technology

-          Synergy of legacy technology, with new APIs enabling new operating models

-          The new possibilities for customer experience

-          The speed of movement of money  and  competitive differentiation

As Victor Dodig CIBC CEO explained in his conversations on the final day with Women in Payments CEO Kristy Duncan, it’s crucial that the big tech firms, like Microsoft, Amazon and Google, play a role in the ecosystem, helping large financial institutions to supplement their tech stacks with the latest innovations – enter RegTech. This is another reason we were thrilled to announce Google as a cloud partner during the week.

With traditional technology players and newer incumbents alike lighting the fire for the discussion around RegTech’s use cases, power and potential, its influence was clear to see.

And the success of the industry was underlined by SIBOS’ Discover Perfect Pitch competition, as RegTech triumphed in the "Established Trendsetter" category, with Encompass taking the prize for its leading dynamic KYC process automation platform, which helps banks meet regulatory requirements for AML/KYC. 

The pitch, in front of seasoned judges crossing banks, venture capitalists and product innovation,  underlined how, through its automation platform, Encompass is an example of a RegTech is transforming the financial services industry, allowing banks to meet these requirements while maximizing business efficiency and customer experience.

You can hear more here [SIBOS TV LINK]

In such an important time for our industry, witnessing RegTech playing a key role in the SIBOS community evidenced the progress that has been made, and how much potential there is yet to be realized. In the payments arena, we have become accustomed to FinTech, originally as a challenger and in recent times being acquired or outlasted, being front and center. However, if there is one thing to take away from this year’s event, it is that RegTech is a critical enabler and will be a sustainable partner to banks around the world for years to come.