The REGTECH Book

1 - The RegTech Book [Seite 3]
2 - Contents [Seite 6]
3 - A FinTech and RegTech Overview [Seite 8]
4 - About the Editors [Seite 14]
5 - Acknowledgements [Seite 16]
6 - Introduction [Seite 18]
6.1 - What a RegTech Compliance Killer System Will Look Like [Seite 22]
6.1.1 - Real-time Data Machine-readable Streams for Regulators [Seite 24]
6.1.2 - Sharing the KYC Burden for Small Business Through Digital ID [Seite 25]
6.2 - Technology-Enabled Collaborative Compliance [Seite 26]
6.2.1 - Collaboration in Compliance Is Key [Seite 26]
6.2.2 - Sharing Responsibility Within the Organization [Seite 27]
6.2.3 - Collaborating Within the Industry [Seite 28]
6.2.4 - Collaborating with the Regulators [Seite 29]
6.2.5 - The Technology Boost to Enable Collaborative Compliance [Seite 29]
6.2.6 - The Journey Has Just Begun [Seite 31]
6.3 - The Age of RegTech Disruption to the Status Quo Is Here [Seite 32]
6.3.1 - Regulatory Change Is No Longer a Project [Seite 33]
6.3.2 - Step Forward RegTech [Seite 34]
6.4 - RegTech and Financial Crime Prevention [Seite 36]
6.4.1 - Lack of ROI - Calling for a Framework Overhaul [Seite 36]
6.4.2 - Where We Stand Today - Manual, Manual, Manual [Seite 37]
6.4.3 - RegTech - A World of Opportunities? [Seite 37]
6.4.3.1 - RegTech and FinTech [Seite 38]
6.4.4 - Outlook [Seite 40]
6.5 - RegTech: Tackling Regulation with Innovation [Seite 42]
6.5.1 - Removing the Bottlenecks to Innovation [Seite 42]
6.5.2 - Not Hibernating [Seite 42]
6.5.3 - Financial Services = Financial Technology [Seite 42]
6.5.4 - London and New York Dominate [Seite 43]
6.5.5 - Bright Future [Seite 43]
6.5.6 - Key RegTech Trends [Seite 43]
6.5.6.1 - Market Surveillance [Seite 43]
6.5.6.2 - Regulatory Reporting [Seite 43]
6.5.6.3 - Stress Testing/Capital Planning [Seite 44]
6.5.6.4 - Fraud Detection [Seite 44]
6.5.6.5 - Controls Automation [Seite 44]
6.5.6.6 - Cyber Security/Data Privacy [Seite 44]
6.5.6.7 - Risk Management [Seite 44]
6.5.6.8 - Client Due Diligence/Know Your Customer [Seite 45]
6.5.6.9 - Communication Monitoring [Seite 45]
6.5.7 - Other Developments [Seite 45]
6.6 - Identities, the RegTech Holy Grail [Seite 46]
6.6.1 - The Identity Problem [Seite 46]
6.6.2 - Why Financial Services and RegTech? [Seite 47]
6.6.3 - The Race Is On [Seite 47]
6.6.4 - The Path Forward [Seite 47]
7 - The RegTech Landscape [Seite 50]
7.1 - Islamic RegTech [Seite 54]
7.1.1 - The Industry [Seite 54]
7.1.1.1 - Islamic Banking [Seite 54]
7.1.1.2 - Islamic Capital Markets [Seite 55]
7.1.1.3 - Islamic Insurance, or Takaful [Seite 55]
7.1.1.4 - International Standard-setting Organizations [Seite 55]
7.1.2 - The Opportunity [Seite 56]
7.1.3 - The Challenges [Seite 56]
7.1.3.1 - Islamic Financial Regulation [Seite 56]
7.1.3.2 - Diverging Views and Interpretations [Seite 56]
7.1.3.3 - FinTech and Emerging Issues [Seite 57]
7.1.4 - The Solution [Seite 57]
7.1.5 - Conclusions [Seite 58]
7.2 - How RegTech Could Help Determine the Future of Financial Services [Seite 60]
7.2.1 - Where It All Started [Seite 60]
7.2.2 - Could It Have Been Different for Esther? [Seite 61]
7.2.3 - Advent of RegTech and Innovation in Trust [Seite 62]
7.2.3.1 - Technology and Regulation [Seite 62]
7.2.3.2 - Analytics, AI, and APIs [Seite 62]
7.2.4 - View from the Top - Feedback Received from Interviews of 120+ CEOs and Board Members [Seite 63]
7.2.5 - Use Cases [Seite 64]
7.2.5.1 - Blockchain Proof of Concept for a Globally Integrated Regulatory Intelligence and Reporting Function (Banking) [Seite 65]
7.2.5.2 - Applying Robotics with AI for Processing of Insurance Claims and Claimant Data, Identifying and Addressing Risks and False Claims (Insurance) [Seite 65]
7.3 - Introducing the RegTech Quality Compass: The Five Factors of RegTech Quality [Seite 66]
7.3.1 - The SERVQUAL Dimensions in Brief [Seite 66]
7.3.2 - Developing a Quality Framework for the Digital RegTech World [Seite 66]
7.3.3 - The Directions of the RegTech Quality Compass [Seite 67]
7.3.3.1 - Efficiency [Seite 67]
7.3.3.2 - Intelligence [Seite 67]
7.3.3.3 - Assurance [Seite 68]
7.3.3.4 - Availability [Seite 68]
7.3.3.5 - Enjoyment [Seite 68]
7.3.4 - Quality Drives Satisfaction Drives Profitability [Seite 69]
7.3.5 - Benefits of Working with the RegTech Quality Compass Framework [Seite 69]
7.4 - How Banks Are Managing Their Risk Through Technology and Market Infrastructure [Seite 71]
7.4.1 - The Markets Post Lehman Brothers [Seite 71]
7.4.2 - Basel III [Seite 71]
7.4.3 - Dodd-Frank, EMIR, and Liquidity [Seite 71]
7.4.4 - BCBS 248 [Seite 72]
7.4.5 - EMIR, Dodd-Frank, and MiFID II - More Players, More Competition [Seite 72]
7.4.6 - Role of Clearing-houses and Related Infrastructure [Seite 73]
7.4.7 - Management of Collateral Requirements by CCPs [Seite 73]
7.5 - RegTech and the Science of Regulation [Seite 74]
7.5.1 - Science Fiction and Banking Reality [Seite 74]
7.5.2 - Managing Risk - The Holy Grail of Banking [Seite 74]
7.5.3 - RegTech and the Regulatory Framework [Seite 75]
7.5.4 - RegTech and Modern Technology [Seite 75]
7.5.5 - Human-Factors Impact of RegTech [Seite 76]
7.5.6 - Preparing for RegTech -Technologists and Bankers [Seite 76]
7.6 - GDPR and PSD2: Self-Sovereign Identity, Privacy, and Innovation [Seite 78]
7.6.1 - A Market in Data-led Services [Seite 78]
7.6.2 - The Need for a More Nuanced and Better Understood Working Definition of Privacy [Seite 79]
7.6.3 - Privacy Is Not Just About Withholding Information from Others [Seite 79]
7.6.4 - How Can Technology Help Implement These Principles and the Intention of GDPR? [Seite 80]
7.6.5 - The Future: Privacy and Innovative Markets Both Better Served by Self-Sovereign Identity [Seite 81]
7.7 - Rise of RegTech in the German Market [Seite 82]
7.7.1 - Overview of RegTech Business Models in Germany [Seite 82]
7.7.1.1 - Customer Journeys [Seite 84]
7.7.1.2 - Business-Related Rules [Seite 84]
7.7.1.3 - IT Infrastructure [Seite 84]
7.7.2 - Use Case: SolarisBank [Seite 84]
7.7.3 - How RegTech Will Evolve [Seite 85]
7.8 - The Power of RegTech to Drive Cultural Change and Enhance Conduct Risk Management Across Banking [Seite 86]
7.8.1 - Culture Determines What You Do When No-one Is Looking [Seite 86]
7.8.2 - Governance Framework: Three Lines of Defence Powered by RegTech [Seite 87]
7.8.3 - Data and New Skills as Strategic Assets [Seite 88]
7.8.4 - Technology to the Rescue [Seite 89]
7.8.5 - Compliance Spending [Seite 89]
7.8.6 - FinTech and RegTech Solutions [Seite 90]
8 - Regulatory Innovation and Sandboxes [Seite 92]
8.1 - Discover the Innovative Technology Behind RegTech Leaders [Seite 96]
8.1.1 - The Regulatory Quest [Seite 96]
8.1.2 - Big Data [Seite 97]
8.1.2.1 - Event-driven Business [Seite 97]
8.1.2.2 - Modern Big Data Architecture [Seite 98]
8.1.2.3 - Unified Data Processing [Seite 98]
8.1.2.4 - Alerting and Other Complex Real-time Processing [Seite 99]
8.1.2.5 - Serving Layer [Seite 99]
8.1.3 - Conclusion [Seite 100]
8.2 - Enabling RegTech Up Front: Unambiguous Machine readable Regulation [Seite 101]
8.2.1 - Publishing Machine-readable Regulation on the Web [Seite 101]
8.2.1.1 - Unique Identifiers for All Parts of the Regulation Minted by Regulators [Seite 102]
8.2.1.2 - Adding Metadata to Regulatory Text via Its ELI [Seite 102]
8.2.1.3 - Maintaining Regulatory Meaning End-to-End [Seite 102]
8.2.1.4 - Our Proof of Concept at FCA TechSprint [Seite 103]
8.2.1.5 - Improved Regulation [Seite 104]
8.2.1.6 - Impact for Regulated Firms and Consumers [Seite 104]
8.3 - Align Open Banking and Future-Proof RegTech for Regulators and Third-Party Providers to Deliver the Optimal Consumer Convenience and Protection [Seite 105]
8.3.1 - Transaction Model (for a Picture-perfect Open Banking Scenario) [Seite 105]
8.3.1.1 - (Customer) Metadata [Seite 106]
8.3.1.2 - (Online) KYC Derivatives [Seite 106]
8.3.1.3 - RegTech Enabling Tool [Seite 107]
8.4 - A Seat at the Table - Bringing the Voice of FinTech to the US Regulatory Process [Seite 109]
8.4.1 - The Case for Financial Services Innovation in SME Lending [Seite 109]
8.4.2 - US Financial Regulation-Outdated, Complex [Seite 109]
8.4.3 - The US Financial Regulatory System Is Silent on Innovation in General and FinTech in Particular [Seite 110]
8.4.4 - Who's Speaking Up for the FinTech Sector? [Seite 110]
8.4.4.1 - No Sandbox? - RegTech to the Rescue [Seite 112]
8.4.4.2 - A Virtual Seat at the Table - Bringing the Voice of FinTech Innovators to the Process [Seite 114]
8.4.5 - Looking Forward [Seite 114]
8.5 - Sandbox Games for RegTech [Seite 115]
8.5.1 - Regulatory Sandbox in the Stricter Sense [Seite 115]
8.5.1.1 - Testing RegTech Applications in the Sandbox [Seite 116]
8.5.1.2 - 'Light Approval' as Regulatory Sandbox in the Broader Sense [Seite 116]
8.5.2 - Conclusion [Seite 117]
8.6 - Legal Guidance for Entering the Sandbox and Taking Advantage of Cross-Border Cooperation Agreements [Seite 118]
8.6.1 - Background: The Genesis of the Sandbox [Seite 118]
8.6.2 - Why Enter the Sandbox? [Seite 118]
8.6.2.1 - Which Sandbox? [Seite 119]
8.6.2.2 - What Are the Requirements When Entering the Sandbox? [Seite 120]
8.6.2.3 - Concluding Thoughts: The Wider Impact of Sandboxes [Seite 121]
8.7 - RegTech and the Sandbox ? Play, Innovate, and Protect! [Seite 122]
8.7.1 - The Rise of RegTech [Seite 122]
8.7.1.1 - RegTech vs FinTech [Seite 122]
8.7.1.2 - The Flood of Regulation [Seite 122]
8.7.1.3 - Prominent RegTech Examples [Seite 122]
8.7.1.4 - Attractive RegTech Hubs [Seite 123]
8.7.1.5 - RegTech for Regulators [Seite 124]
8.7.2 - Regulatory Sandboxes for More Innovation [Seite 125]
8.7.2.1 - Sandbox Goals and Benefits [Seite 126]
8.7.2.2 - Trade-off: Innovation vs Consumer Protection [Seite 126]
8.7.2.3 - Global Sandboxes: The Way Forward [Seite 127]
9 - A Call for Innovation or Disruption? [Seite 130]
9.1 - Governance, Risk, and Compliance: Complex or Complicated? [Seite 134]
9.1.1 - Asset Management: A Case Study [Seite 134]
9.1.2 - Complex: 'Involving Many Different and Connected Parts' [Seite 135]
9.1.3 - Complicated: 'Involving Many Different and Confusing Parts' [Seite 135]
9.1.4 - From Complicated to Complex [Seite 135]
9.1.5 - Technology [Seite 137]
9.2 - Innovation or Disruption: Not Always Black and White [Seite 138]
9.2.1 - Disruption or Innovation: A Tale of Two Cultures [Seite 138]
9.2.2 - Keys to Success for FinTech Partnerships [Seite 139]
9.2.2.1 - Invest All the Way in Partnerships [Seite 139]
9.2.2.2 - Be Prepared to Take Risks [Seite 140]
9.2.2.3 - Not All Rules Are Made to Be Broken [Seite 140]
9.2.2.4 - Openness Creates Lasting Value [Seite 141]
9.2.2.5 - Partnerships as a Way Forward [Seite 141]
9.3 - How to Use Digital Marketing Data in Regulated Industries [Seite 142]
9.3.1 - First-, Second-, and Third-Party Data [Seite 142]
9.3.2 - Attract: Search Engine Marketing [Seite 143]
9.3.3 - Collect: Calls to Action and Web Analytics Data [Seite 144]
9.3.4 - Combine: User Identity and Marketing Automation [Seite 144]
9.3.5 - Conclusion [Seite 145]
9.4 - Invention Versus Reinvention [Seite 146]
9.4.1 - What Is Open Banking? [Seite 146]
9.4.2 - Building a Bank Through Partnerships [Seite 146]
9.4.3 - Platform Banking Is How It Starts [Seite 147]
9.4.4 - Marketplace Banking Is How It Develops [Seite 147]
9.4.5 - Co-ownership of Products and Customers [Seite 148]
9.4.6 - The Execution Model Is Fundamental to Succeed [Seite 148]
9.4.7 - API Monetization and Getting the Business Model Right [Seite 148]
9.4.8 - Conclusion [Seite 149]
9.5 - Making Regulation Machine Readable [Seite 150]
9.5.1 - Invest in Industry Standards, Instead of Individual Approaches [Seite 150]
9.5.2 - Shift Lawyers' Mindsets Towards Digital [Seite 151]
9.5.3 - Managing Regulations Digitally, Instead of by Hand [Seite 151]
9.5.4 - How to Digitize Regulations? [Seite 152]
9.5.5 - But How Can RegTech Platforms Digitize Regulation? [Seite 152]
9.6 - Can We Digitize Know Your Client? [Seite 154]
9.6.1 - How Are We Doing Today? [Seite 155]
9.6.1.1 - Aside from Biased Advisers, Why Is This So Hard to Get Right? [Seite 156]
9.6.2 - Cognitive Computing [Seite 156]
9.6.3 - Conclusion [Seite 157]
10 - RegTech Investment and Compliance Spending [Seite 158]
10.1 - Why a Substantial Investment in Financial Services RegTech Now Will Strategically Reduce Your Future Regulatory Compliance Costs [Seite 162]
10.2 - Old Tech + New Tech = RegTech: Excel Spreadsheets and End User Computing in a Regulated World [Seite 166]
10.2.1 - Which Regulations Apply to EUC Solutions in Financial Organizations? [Seite 166]
10.2.1.1 - Spreadsheets in Financial Organizations [Seite 167]
10.2.1.2 - How Big Is the Problem? [Seite 168]
10.2.1.3 - How Can RegTech Help Financial Institutions Meet Their EUC Regulatory Requirements? [Seite 169]
10.2.2 - Conclusions [Seite 169]
10.3 - Will Financial Institutions Ever Achieve a 100% Compliance with Anti-Money Laundering and Combating the Financing of Terrorism Rules? [Seite 170]
10.3.1 - Innovation and Disruption - The Magic Words for Investors? [Seite 170]
10.3.1.1 - Standardization, Digitization, and Automatic Validation [Seite 171]
10.3.1.2 - Customer Identification and Verification [Seite 171]
10.3.1.3 - Repository, Data Ownership, and Self-Assessment [Seite 172]
10.3.1.4 - Conclusion [Seite 173]
10.4 - Merits and Demerits of a Shared Risk Engine [Seite 174]
10.4.1 - Cloud Infrastructure for Storage [Seite 174]
10.4.2 - Data Handler [Seite 174]
10.4.3 - Model Silos [Seite 175]
10.4.4 - Stress Testing and Scenario Analysis [Seite 176]
10.4.5 - Integrated Risk Reporting [Seite 176]
10.4.6 - Architecture Details [Seite 176]
10.4.7 - Rapid Scaling [Seite 176]
10.4.8 - Reduced Cost [Seite 177]
10.4.9 - Improved Data Quality [Seite 177]
10.4.10 - Faster and Modular Modelling [Seite 177]
10.4.11 - Improved Supervisory Comparability [Seite 177]
10.4.12 - Data Privacy [Seite 177]
10.4.13 - Standardization of Internal Models [Seite 178]
10.4.14 - Systemic Model Risk [Seite 178]
10.4.15 - Conclusions [Seite 178]
10.5 - Spend on Compliance: A Necessary Evil or Business Enabler? [Seite 179]
10.5.1 - Compliance as a Cost Centre [Seite 179]
10.5.2 - Why Is Compliance Not Addressing the Blind Spot? [Seite 180]
10.5.3 - RegTech: A New Wave of Opportunity [Seite 181]
10.5.4 - Examples [Seite 182]
10.5.4.1 - Business Protection - Compliance and Fraud [Seite 182]
10.5.4.2 - Business Growth - Customer Experience and Engagement [Seite 182]
10.5.5 - How to Get Started [Seite 183]
11 - RegTech for Authorized Institutions [Seite 184]
11.1 - RegTech Opportunities in a Post-4MLD/5MLD World [Seite 188]
11.1.1 - A GLOBAL ISSUE [Seite 189]
11.1.1.1 - The Risk Based Approach (RBA) [Seite 190]
11.1.1.2 - The Union of RegTech and Increased Regulation [Seite 190]
11.1.1.3 - Beyond Regulatory Compliance [Seite 191]
11.1.1.4 - Beyond the Regulatory Need for RegTech [Seite 191]
11.1.1.5 - An Enhanced Approach [Seite 192]
11.2 - Passporting in the EU - Is an Opportunity Also a Problem? [Seite 193]
11.2.1 - What Constitutes 'to Provide Any or All of the Investment Services [Seite 193]
11.2.2 - The Actual Application Form Process That an Investment Firm Is Required to Complete When Seeking an EU Passport [Seite 194]
11.2.3 - Conclusion [Seite 195]
11.3 - What Do PSD2 and Similar Activities Mean for Banks and FinTech Start-ups? [Seite 197]
11.3.1 - PSD2 Introduces Two Types of Entities to the Financial Industry: PISP and AISP [Seite 197]
11.3.1.1 - Transparency of Payment Services [Seite 198]
11.3.1.2 - Payments Coverage [Seite 198]
11.3.1.3 - Payment Initiation Services [Seite 198]
11.3.2 - Access to Accounts (XS2A) [Seite 198]
11.3.3 - Customer Authentication and Security [Seite 198]
12 - RegTech from a Regulatory Perspective [Seite 202]
12.1 - The Role of Anti-Money Laundering Law and Compliance in FinTech [Seite 206]
12.1.1 - Anti-Money Laundering Law [Seite 206]
12.1.2 - Counterterrorist Financing Law [Seite 206]
12.1.3 - Sanctions Law [Seite 207]
12.1.4 - AML Compliance 101 [Seite 208]
12.2 - Banking Supervision at a Crossroads - RegTech as the Regulators' Toolbox [Seite 211]
12.2.1 - Technology and Regulation [Seite 212]
12.2.2 - Compliance and Reporting [Seite 212]
12.2.3 - Risk Mitigation [Seite 214]
12.2.4 - Conclusion [Seite 214]
12.3 - FinReg, FinTech, and RegTech - Quo Vadis, EU? [Seite 215]
12.3.1 - Financial Market Regulations as a Game Changer [Seite 215]
12.3.2 - RegTech - The Helping Hand for Financial Institutions and Regulators [Seite 217]
12.3.3 - EU's Watchful Approach on FinTech and RegTech [Seite 217]
12.3.4 - Outlook: Call for Regulatory Interoperability [Seite 219]
12.4 - The RegTech Landscape from a Regulator's Perspective [Seite 221]
12.4.1 - The Emergence of a New Breed of Technology-Driven Financial Institutions [Seite 221]
12.4.2 - The Need for Traditional Financial Institutions to Redesign Their Processes [Seite 222]
12.4.3 - The Positioning of Regulators in the Midst of This Evolution [Seite 224]
12.5 - RegTech is for Regulators Too, and its Future is in Emerging Markets [Seite 226]
12.5.1 - Regulators Are Starting to Innovate as Well [Seite 226]
12.5.2 - For Emerging Market Regulators, the Risk of Inaction Is Too High [Seite 226]
12.5.3 - Glimpses of a RegTech Approach to Regulation are Emerging [Seite 227]
12.5.4 - In Emerging Economies, We Are at the Beginning of a Wave of Regulatory Experimentation with RegTech [Seite 227]
12.5.5 - Where RegTech for Regulators Is Headed [Seite 227]
13 - Blockchain and AI in RegTech [Seite 230]
13.1 - The ROI of RegTech [Seite 234]
13.1.1 - So what does this mean in practice? [Seite 235]
13.2 - The Augmented Compliance Office [Seite 237]
13.2.1 - Know Your Customer [Seite 237]
13.2.2 - Enterprise Risk Management [Seite 239]
13.2.3 - Predictive Regulatory Monitoring [Seite 239]
13.2.4 - In Conclusion [Seite 240]
13.3 - Dissolving Barriers: A Global Digital Trust Protocol [Seite 242]
13.3.1 - Attempts at Unified Global Identity [Seite 242]
13.3.1.1 - Generic Digital Identities [Seite 242]
13.3.1.2 - Digital Identities Linked to Unique Physical Identities [Seite 243]
13.3.2 - Getting to Know More About This Identity (Due Diligence) [Seite 243]
13.3.3 - Beyond One-time KYC: Keeping Records [Seite 244]
13.3.4 - Underlying Core Global Regulatory Principles [Seite 244]
13.3.5 - Core Function of Compliance Can Be Replaced by an AI Platform [Seite 244]
13.3.5.1 - Verifying Identity [Seite 245]
13.3.5.2 - Background Check [Seite 245]
13.3.5.3 - Regulatory Decision Engine [Seite 245]
13.3.6 - The Power of a Common Global KYC Platform [Seite 245]
13.3.7 - Keeping Records Beyond KYC [Seite 245]
13.3.8 - Conclusion [Seite 246]
13.4 - Can AI Really Disrupt Monitoring for Suspicious Activity? [Seite 247]
13.4.1 - Grinding to a Halt [Seite 247]
13.4.2 - A Definition [Seite 247]
13.4.3 - Linking with the Facts [Seite 248]
13.4.4 - The Next Generation of Suspicious Activity Monitoring in Practice [Seite 248]
13.4.5 - The Challenge with the Next-Generation Approach [Seite 249]
13.4.6 - Conclusion [Seite 250]
13.5 - Forging a Responsibility and Liability Framework in the AI Era for RegTech [Seite 251]
13.5.1 - Applying Current Legal Frameworks in the AI Era [Seite 253]
13.5.2 - Key Issues for Forging a Responsibility and Liability Framework in the AI Era [Seite 254]
13.5.2.1 - Data Reliability, Cleansing, and Consent [Seite 255]
13.5.2.2 - Algorithm Model Bias and Law-breaking or Law-avoidance Activity [Seite 255]
13.5.2.3 - Correlation-, Not Causation-, Based [Seite 256]
13.5.2.4 - Diminishing Role of Human Agency in ML [Seite 257]
13.5.2.5 - Philosopher's Trolley Problem Applied to ML [Seite 258]
13.5.2.6 - Assessing Model Risk in ML Black Boxes [Seite 259]
13.5.3 - The Road Ahead: Addressing Opacity and Complexity for AI Responsibility [Seite 259]
13.6 - Compliance with Data Protection Regulations by Applying the Blockchain Technology [Seite 262]
13.6.1 - Distributed and Transparent Source of Truth [Seite 263]
13.6.2 - Immutable and Tamper-proof Ledger [Seite 263]
13.6.3 - Secure Space to Process Transactions [Seite 264]
13.7 - Blockchains Are Diamonds' Best Friend: The Case for Supply Chain Transparency [Seite 266]
13.7.1 - What Is Provenance? [Seite 267]
13.7.2 - What Technology Solutions Are Available? [Seite 267]
13.7.3 - Knowing Your Object (KYO) [Seite 268]
13.7.4 - Blockchain's Potential [Seite 269]
13.7.5 - Future Challenges [Seite 270]
14 - RegTech Applicability Outside the Financial Services Industry [Seite 272]
14.1 - Protecting Consumers and Enabling Innovation [Seite 276]
14.1.1 - What Is RegTech? [Seite 276]
14.1.2 - Data Revolution [Seite 276]
14.1.3 - Enter Data Protection Regulation [Seite 277]
14.1.4 - Consumer Empowerment [Seite 278]
14.1.5 - The RegTech Solution [Seite 278]
14.2 - RegTech Impact on the Private Security Industry [Seite 279]
14.3 - ArtTech: How Blockchain Can Improve Provenance [Seite 282]
14.3.1 - Introduction [Seite 282]
14.3.2 - Provenance and Blockchain Background [Seite 283]
14.3.2.1 - Multiple Trusted Participants [Seite 283]
14.3.2.2 - Governance Challenges [Seite 284]
14.3.2.3 - Digital Provenance Standards [Seite 284]
14.3.3 - Conclusion [Seite 284]
14.4 - The Potential of RegTech in Improving the Effectiveness of Environmental Regulation [Seite 286]
14.4.1 - The Clean Energy Revolution [Seite 286]
14.4.2 - Regulatory Uncertainty in Monitoring Environmental Data [Seite 287]
14.4.3 - The Use of Technology in Achieving More Effective Environmental Regulation [Seite 288]
14.4.4 - Conclusion [Seite 289]
14.5 - RegTech Applicability Outside the Financial Services Industry [Seite 290]
14.5.1 - Non-financial Compliance [Seite 290]
14.5.2 - Tone from the Top/Ethics [Seite 290]
14.5.3 - Due Diligence/Enhanced Due Diligence [Seite 291]
14.5.4 - Anti-bribery and Corruption [Seite 291]
14.5.5 - Trust and Safety [Seite 292]
14.5.6 - Communications Archival/Monitoring [Seite 292]
14.5.7 - Insider Trading [Seite 292]
14.5.8 - Conclusion [Seite 293]
14.6 - Using RegTech as a Cross-Industry Digitization Tool [Seite 294]
14.6.1 - Lessons Learned in the Financial Services Industry [Seite 294]
14.6.2 - Data Protection Is a Now a Cross-industry Problem [Seite 294]
14.6.3 - Consequences of Not Protecting Data (and the Benefits of Doing So) [Seite 295]
14.6.4 - Issues Related to Industries Outside of the Financial Services Sector [Seite 295]
14.6.5 - How RegTech Can Be Applied to Industries Outside of the Financial Services Sector [Seite 296]
14.6.6 - Conclusion [Seite 296]
14.7 - RegTech Unleashed: Discovering the Pathways Beyond Finance [Seite 298]
14.7.1 - More than FinTech and Finance [Seite 298]
14.7.2 - Regulatory Costs Driving Cross-sector Demand [Seite 299]
14.7.3 - Big Data Also Drives Demand in Business [Seite 300]
14.7.4 - Co-opting Public Sector for Vibrant Ecosystem [Seite 300]
14.7.5 - RegTech: The Next Generation [Seite 301]
14.7.6 - Conclusion [Seite 301]
14.8 - RegTech Outside Finance: Four Options, One Clear Choice [Seite 303]
14.8.1 - FATF Recommendations [Seite 303]
14.8.2 - Four Available Options [Seite 304]
14.8.2.1 - Fight [Seite 304]
14.8.2.2 - Flight [Seite 304]
14.8.2.3 - Pretend to Fight [Seite 304]
14.8.2.4 - Suicide [Seite 305]
14.8.3 - The Option to Fight [Seite 305]
14.8.4 - There Are So Many Solutions Out There [Seite 305]
14.8.5 - Conclusion [Seite 306]
14.9 - RegTech: A Safe Bet for Tackling AML and Fraud in the Gambling Sector [Seite 308]
14.9.1 - The RegTech Technology Toolbox [Seite 308]
14.9.2 - RegTech in a Gambling Context [Seite 309]
14.9.3 - Supervised Learning Techniques [Seite 309]
14.9.4 - Unsupervised Learning Techniques [Seite 310]
14.9.5 - 360° View of Bettors [Seite 310]
14.9.6 - Improving Efficiency by Centralizing Data for Compliance Teams [Seite 310]
14.9.7 - Assembling Everything in a Real-time Architecture [Seite 310]
14.9.8 - Machine Learning's Black Box Problem [Seite 311]
14.9.9 - The Positive RegTech Externality [Seite 311]
15 - Social Impact and Regulation [Seite 312]
15.1 - The FinTech Ecosystem Between Legal Compliance and Social Dimension [Seite 316]
15.2 - The End Justifies the Means: Putting Social Purpose Back at the Heart of Banking and Financial Regulation [Seite 321]
15.2.1 - Lessons Learned or Business as Usual? [Seite 321]
15.2.2 - The Collapse of Trust and the Spread of Inequality [Seite 322]
15.2.3 - The Role of RegTech as an Instrument of Change [Seite 323]
15.2.4 - Purpose-driven Regulation [Seite 323]
15.2.5 - Better Collaboration for Better Outcomes [Seite 324]
15.3 - RegTech's Impact on Trust and Identity [Seite 326]
15.3.1 - Tools for Restoring Trust [Seite 326]
15.3.1.1 - Crowdsourcing Trust [Seite 326]
15.3.1.2 - Increased Transparency [Seite 326]
15.3.1.3 - Look Back at the Past, but Don't Stare [Seite 326]
15.3.2 - Identity Vulnerability Is Globally Pervasive [Seite 327]
15.3.2.1 - Identity as a Market Failure [Seite 327]
15.3.3 - How the Futurist Sees Trust and Identity: Social Due Diligence [Seite 329]
15.3.3.1 - Trust but Verify [Seite 329]
15.3.3.2 - 'You Don't Own Me!' [Seite 329]
15.4 - How Technology Is Driving Financial Inclusion [Seite 330]
15.4.1 - The Role of Government [Seite 330]
15.4.2 - The Role of Technology [Seite 331]
15.4.3 - The Emergence of the Regulatory Sandbox [Seite 331]
15.4.4 - Technological Inclusion Means Financial Inclusion [Seite 331]
15.4.5 - Where Next? [Seite 333]
15.5 - Banking the Unbanked and Underbanked: RegTech as an Enabler for Financial Inclusion [Seite 334]
15.5.1 - Why Is That? [Seite 334]
15.5.2 - RegTech as a Solution to Financial Exclusion [Seite 335]
15.5.3 - India as a Case Study [Seite 335]
15.5.4 - Africa as a Case Study [Seite 336]
15.5.5 - MENA Region as a Case Study [Seite 337]
15.5.6 - Refugees as a Case Study [Seite 337]
15.5.7 - Conclusion [Seite 338]
15.6 - Superhero Way: Enhancing Regulatory Supervision with Superpowers [Seite 339]
15.6.1 - The Flavour of Prevention [Seite 339]
15.6.2 - The Prey [Seite 339]
15.6.3 - At Eye Level [Seite 340]
15.6.4 - Robocop Way? [Seite 340]
16 - The Future of RegTech [Seite 342]
16.1 - Market Surveillance 2020 [Seite 346]
16.1.1 - Fifty Billion Events [Seite 346]
16.1.2 - Capital Markets Policing Challenges [Seite 346]
16.1.3 - Call for Action - Regulations in Europe [Seite 347]
16.1.4 - Key Business and Technology Requirements for Market Analysis Platform (MAP) [Seite 348]
16.2 - I Regulate, Therefore I Am? Regulating Humans' and Machines' Conduct and Culture [Seite 351]
16.2.1 - A Brave New World of Regulated Activity [Seite 351]
16.2.2 - RegTech and the Future of Digital Conduct Risk [Seite 352]
16.2.3 - Whom Do You Trust? Empowerment Through Blockchain and Identity Management [Seite 354]
16.2.4 - Conclusion [Seite 355]
16.3 - The Future of RegTech [Seite 356]
16.3.1 - A Big Opportunity [Seite 356]
16.3.2 - Compliance Culture [Seite 356]
16.3.3 - New Technologies [Seite 357]
16.3.4 - Roles of RegTech Companies [Seite 358]
16.4 - From RegTech to TechReg -Regulation in a Decentralized World [Seite 360]
16.4.1 - Existing Regulatory Framework [Seite 360]
16.4.2 - Decentralization [Seite 360]
16.4.3 - Regulation in a Decentralized Market [Seite 360]
16.4.3.1 - Regulating the Sellers [Seite 361]
16.4.3.2 - Regulating the Buyers [Seite 361]
16.4.3.3 - Regulating the Software Providers (TechReg) [Seite 362]
16.4.4 - A Broader Case for Regulating Technology Providers [Seite 362]
16.4.5 - TechReg Market Opportunities [Seite 362]
16.4.5.1 - Coding Academies [Seite 363]
16.4.5.2 - Coding Industry Association [Seite 363]
16.4.5.3 - Code Review and Certification [Seite 363]
16.5 - Emerging Innovations in RegTech [Seite 364]
17 - List of Contributors [Seite 367]
18 - Index [Seite 374]
19 - EULA [Seite 389]