Sarah Kocianski, senior research analyst for BI Intelligence, Business Insider's premium research service, has compiled a detailed report on regtech that explains what's driving the regtech trend and where the biggest opportunity lies. Regtechs are companies that use technology to help firms decrease their regulatory burden. Fintechs, meanwhile, will benefit by gaining access to incumbent institutions' large customer bases.įinancial services companies are struggling to keep up with a mountain of new regulatory and reporting requirements - and it's only going to get worse.įrom the 2008 financial crisis through 2015, t he annual volume of regulatory publications, changes, and announcements increased a staggering 492%. That's creating an opportunity for a swath of new companies called regtechs. Banks will also likely find it attractive that these services require minimal connection effort on their part and offer access to multiple third parties. Such services enable incumbent banks to build and launch products more quickly, and probably more easily, than they have historically been able to. We expect to see more of these products in the near future. Virtusa Polaris said more features will be added down the line. The Accelerator has three main components: Fintech Connect, 50 "innovative fintechs" banks can connect to Core Connect, adapters that help APIs connect to banks' core systems and BIAN Compliant MicroServices Blueprint, a product for lending, payments, and wealth management. Virtusa Polaris on Wednesday launched its OpenBank API Accelerator, a cloud-based platform that helps banks integrate with third parties and leverage their services for their own clients. ![]() Banks need only connect once to the FINKit platform in order to access functionalities of multiple providers, including digital wallet solutions and payments security, which they can then deliver to their own customers via their proprietary digital services. Monitise on Wednesday announced the launch of the FINKit Partner Program, a platform and toolkit that allows banks to leverage the technology and solutions of a range of fintechs and payments providers, including MasterCard, Experian, and Yodlee. ![]() Monitise and Virtusa Polaris are the two latest firms to seize this opportunity: That's presenting an opportunity for third-party firms with services that help banks make these connections more easily. ![]() To learn more and subscribe, please click here.Īs PSD2 legislation looms in Europe, and Open Banking is due to be introduced by 2018 in the UK, the creation and use of open APIs is becoming less of a choice and more of a necessity for legacy banks.ĪPIs provide simple connections between systems, while open APIs establish connections between two parties. Some banks view open APIs as a threat because they enable third parties to access their data and systems, but others see them as an opportunity to connect to fintechs in order to offer their own customers enhanced products and services. This story was delivered to BI Intelligence " Fintech Briefing" subscribers.
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