What are the key features of a good RegTech partner for FinTech?

Finding the right RegTech partner is like finding a good friend. They should: * Understand your needs: They get what your business does and the specific rules you need to follow. * Be reliable: They stay up-to-date on the latest rules, so you don't have to. * Have your back: They help you solve problems quickly if anything goes wrong. * Be a good fit: They work well with your existing systems and team. * Be flexible: They can grow and adapt as your business changes. * Value your input: They listen to your feedback and work with you to find the best solutions. * Have a proven track record: They have a history of helping other businesses like yours succeed.

I'd also add that it's important to seek client references. Research your potential regtech partner's reputation in the industry and ask for client references to gauge their track record and client satisfaction. They don't have to have an identical use case but it will be a good guide as to how they work with their current clients, the realities of onboarding and their support.

A good RegTech partner for FinTech should have solid expertise and experience in regulatory compliance. They should understand the complexities of financial regulations and have a proven track record of helping FinTech companies navigate them successfully. Look for partners who have worked with similar firms and have a deep understanding of the regulatory landscape in your target markets. Their experience can be a valuable asset in ensuring that your FinTech solutions comply with all necessary regulations, giving you peace of mind and credibility in the industry.

One thing I've found helpful is when RegTech partners deeply understand the compliance landscape in the financial industry, including relevant laws and regulations, but also industry standards, best practices, and relevant learnings from adjacent products and services.

Understanding the regulatory environment; Law , rules and regulations. Expertise in the particular field Robust technical partner Execution strategy Compliance and cyber security Continuous upgradation with integration of amendment to new regulations

Reg Tech partners should support the brass tacks : regional and global compliance regulations, automation of OFAC checks on SDN etc. It would be significant for a Reg Tech partner to be recognized as a thought leader in industry alliances, councils, or even participate in fraud or risk-sharing consortia, reflecting a preference in this regard. A growing preference lies in innovations that bolster novel verification and detection methods, such as behavioral data, biometrics, social footprint analysis, or the utilization of synthetic data generated by Generative AI. Ensuring the provision of these services across diverse geographies/markets, with rapid response times and adaptable form factors, is of utmost importance.

Expertise is mastering a task, while experience is using that skill efficiently across different situations. Combined, they ensure you perform well and adapt to new challenges.

- Deep knowledge and experience in the specific regulatory areas affecting your FinTech business, offering tailored and up-to-date solutions for domains like payments, lending, or crypto. - A proven track record of working with similar FinTech companies and regulators, showcasing their credibility and reputation in the industry. - The ability to understand and address the nuances and challenges specific to your FinTech domain, ensuring compliance and efficiency.

Expertise is a must. Regtech should have subject matter experts that understand the problems and needs not just offering a tech solution with good functionalities. This requires to understand requirements + problems + specificities. Regtech solution is supposed to solve problems and issues. For this it needs to fit the Fintech activity and organisation and way of working. Experience with similar Fintech companies is something nice but does this mean avoid solution that is provided by a start up is no good? I think that having a Business continuity plan is the more important thing. Experienced Regtechs don't always and necessarily provide the better option and solution. They should be flexible and fit with a solution not impose one.

Many RegTech companies offer good solutions, but they often lack user-friendly interfaces and essential features. True innovation in RegTech requires a deep understanding of day-to-day operations, to develop solutions that genuinely reduce the regulatory burden on real people. It’s crucial to have in-depth knowledge of regulatory processes to identify what tasks consume the most time for compliance teams. It is important to minimize friction in daily operations, delivering tangible value to customers. Scalability is another critical factor. Legacy systems often struggle to handle today's transaction volumes. We have clients processing over 100 million transactions monthly—a scale unimaginable for companies that were founded 15 years ago.

In my role as a fintech executive, we sought a RegTech partner to enhance our compliance processes and regulatory reporting capabilities. We selected a company that offered an innovative AI-powered platform for real-time transaction monitoring and regulatory surveillance. Their scalable infrastructure and customizable solutions allowed us to seamlessly integrate their technology into our existing systems and workflows. Through collaborative workshops and joint development sprints, we co-designed tailored compliance dashboards and risk assessment models that aligned with our business objectives and regulatory obligations. This partnership enabled us to enhance our regulatory compliance capabilities & streamline reporting processes.

To evaluate a RegTech partner for innovation and scalability means asking the right questions about solution customization. One-size-fits-all products work well for certain stages of a company. However, at scale, executives need to consider the tailored needs and requirements they face day-to-day. Good RegTech partners should adapt to your needs quickly and effectively, ensuring your company remains compliant at all times.

Good regtech solution always means scalability. It should safe time, efforts, staff. Be inovative and meet challenges of vonstant developments and inovations not only of the industry and regulators but also the needs and risk and challenges it tries to solve. How does the regtech tool make your company safer, more serviceable but also scalable to meet growth challenges.

Compliance tools are becoming a commodity and have to compete on price. Many Regtechs "differentiate" by offering more details or enhanced analytics and reporting. Instead of saving time these "data-enhanced tools" are creating more work to review and dismiss extra data points. Compliance people believe that more data is good. But often you have more data to document and reconcile. Compliance people love the process of digging deeper and would rather delay the decision claiming "additional investigation is needed". Additional data serve as a convenient excuse. Adding unnecessary features is a nice Candy Crush office game for the compliance team, but it does not represent innovation within RegTech.

The following should be de rigueur for a Reg Tech partner. Ease of connectivity, Easily retrievable data sets that are dynamic and live, analytical tools that are proactive and preemptive, Horizon scanning of developing regulations in bite size summaries that are easily digestible, bonus points if they are tailored to the clients business re: cause, effect and implementation with fit for purpose references to related rule books, thematic and emerging risks per product line. Industry standard templates with how to use guides, based on the deep knowledge of rhr clients business gained, production of easily digestible info graphics depicting key processes.

- Ability to offer cutting-edge technology and solutions, leveraging artificial intelligence, machine learning, cloud computing, and blockchain to automate and streamline regulatory processes. - Capability to reduce errors and costs while enhancing performance and customer experience through advanced technologies. - Flexibility to scale solutions according to your growth and needs, and adaptability to new regulations and markets, ensuring sustained compliance and efficiency.

Solutions should also be customisable to meet the specific needs of the FinTech company. For example, customised to its regulatory activity, and the risks involved in this.

An open API framework allows for easy integration with other technology systems, enhancing the interoperability of the RegTech solution with various FinTech tools and services. Ensure the RegTech partner can handle compliance requirements in various jurisdictions, accommodating the global expansion. Utilising AI/ML to identify evolving compliance issues and trends.

Australian regulators such as ASIC and APRA necessitate RegTech partners attuned to innovation and scalability. Opting for partners well-versed in cutting-edge technologies like AI, machine learning, cloud computing, and blockchain is crucial. These tools aid in automating regulatory processes, minimizing errors, reducing costs, and improving overall performance. For example, implementing blockchain can enhance data integrity in financial transactions, ensuring compliance. A proficient RegTech partner must offer scalable solutions, adapting seamlessly to evolving regulatory landscapes and market dynamics, ensuring efficiency and alignment with the stringent requirements of ASIC, APRA, and other regulators.

And your RegTech Provider should provide real-time monitoring of regulatory changes and offer reporting features that enable quick and accurate regulatory reporting to relevant authorities

I agree, and in addition any RegTech should possess robust security measures and clear procedures in place for protecting sensitive data. RegTech partners should be experts in all applicable data privacy areas for your business. If they cannot walk the walk, do not believe the talk.

In the synergy of RegTech and FinTech, security and compliance are linchpins. A robust partnership demands a RegTech solution that safeguards against cyber threats, with encryption, authentication, and vigilant audits. In the Australian market, aligning with the Privacy Act and adhering to the Australian Privacy Principles exemplifies commitment to local compliance. Integrating these elements not only fortifies data protection but also ensures ethical processing. In this combined landscape, an unwavering focus on security and compliance fortifies the foundation for sustainable success in both RegTech and FinTech domains.

- Robust security measures and protocols, including encryption, authentication, firewalls, and regular audits, to protect your data and systems from cyberattacks, breaches, and fraud. - Compliance with relevant data protection and privacy laws and standards, such as GDPR, CCPA, and PCI DSS, ensuring secure and ethical data storage and processing. - Capability to help monitor and report compliance status and performance, and promptly alert you of any issues or gaps.

Data protection and security are a must have. You reach out to Regtech for solutions not new challenges and problems. They should have clear understanding for this problem and a clear solution that meets your needs and expectations in line with regulatory requirements. You need to verify that not only on paper but test it during project and implementation process.

Finding the right RegTech buddy for your FinTech venture means putting security and rule-following at the top of your list. It's all about making sure your tech-savvy financial solutions not only play by the book but also keep customer data safe from the digital boogeymen lurking online. These tech guardians bring to the table top-notch defenses against cyber nasties and data leaks, which is critical for keeping everyone's trust and keeping the operation legit. They've got the smarts to ensure your services stay in sync with the legal landscape—covering your back now and bracing for whatever twists and turns might come down the line.

As digital banks operate in an online-only environment, ensuring robust security and compliance is essential. This is where identity providers like IDnow or Onfido come into play.Their advanced verification technologies help prevent identity fraud, streamline the customer onboarding process, and ensure compliance with global regulatory standards.

Ensuring the security of data and systems protects against cyber threats and unauthorized access, safeguarding sensitive information. Compliance with regulations and standards not only helps in maintaining legal obligations but also builds trust with customers and regulators. RegTech solutions that prioritize security measures like encryption, authentication, and firewalls, along with compliance with data protection laws such as GDPR, CCPA, and PCI DSS, are crucial for the effective functioning of financial institutions. By addressing security and compliance requirements, RegTech firms can help organizations mitigate risks, enhance operational efficiency, and maintain a strong reputation in the industry.

Very crucial, you need to make sure your partner and all exchanged information will be secured and kept safe, and they will keep up today with data provide regulations

To ensure protection against cyberattacks, breaches, and fraud, selecting a RegTech partner entails stringent scrutiny of their capabilities. They should have a multi-layered defense strategy comprising encryption algorithms, robust authentication, and firewalls. Adherence to regulatory frameworks involve compliance and proactive adoption of best practices to safeguard sensitive information. Ethical data handling practices must be ingrained within their operational ethos,. A RegTech partner should offer comprehensive monitoring and reporting functionalities,continuous surveillance of regulatory requirements and performance metrics,effective alerting mechanisms,facilitating swift remediation actions and ongoing regulatory adherence.

Important is to look for the existing client's portfolios with success rate : some of the other basic of things to look for are : - Seamless API integration - Compatibility with existing systems - Data mapping and transformation capabilities - Support for third-party integration - Customization options for workflows and UI - Scalability to support business growth - Comprehensive training and support - Transparent and cost-effective pricing

One thing I've found helpful is finding partners who are as explorative as you are. Partnerships can help both sides of the coin, through detailed user interviews and new product testing. It's also key to have a partner who is willing to ingest new data points too - definitions of regulatory compliance can be different across institutions so data can be used in multiple ways.

Choose a partner with solutions that seamlessly integrate with your existing technology infrastructure and systems. Assess their ability to personalize and adapt their solutions to your specific needs and compliance workflows. Prioritize partners that offer open APIs and flexibility for future integrations.

Fast and easy integration process is expected. Heavy process that requires both time and resources is no good. This means time and money. Also customization should be there as a standard. Your activity and needs will change and they need to be able to meet those in reasonable time and manner. It's not a one off thing it's a long term partnership that makes better both parties over time. Analytics, reporting, data extraction, formatting. All that regulators would like but also all that you may need and make your work and services better and decisions more informed.

Like banks going to open banking I believe most of the providers in the filed should follow the same and provide out of the box integration and data exhange hubs

A key feature of an ideal RegTech partner for FinTech is the ability to offer seamless integration and customization. The partner should provide solutions that easily integrate with your existing platforms, systems, and workflows, ensuring interoperability with your APIs, data sources, and third-party services. This minimizes disruptions and enhances efficiency. Additionally, customization is crucial; the partner must adapt their solutions to fit your unique business model, goals, and requirements. Offering tailored options that align with your needs and budget, they enable a more personalized and effective regulatory compliance strategy, crucial for the evolving landscape of FinTech.

In a collaborative FinTech and RegTech scenario, seamless integration and customization play pivotal roles. Consider a scenario where a FinTech platform specializing in digital payments partners with a RegTech solution to enhance fraud detection and compliance. Through robust integration, the RegTech system seamlessly integrates with the payment platform, monitoring transactions in real-time. Customization comes into play as the RegTech solution tailors its algorithms to match the unique risk profiles of the FinTech firm and the regulatory landscape. This collaboration not only fortifies security and compliance but also showcases the adaptability and synergy achievable through integrated, customized FinTech and RegTech solutions.

Customization involves tailoring a solution through software development, which can be costly and time-consuming. Configuration, using low-code or no-code tools, allows quick changes using existing features. Composable architecture is key in RegTech. It allows components to be assembled in various combinations to meet specific needs, offering flexibility and speed. This enables FinTech companies to adapt rapidly to changing regulatory requirements without extensive customization.

RegTech solutions based on composable architecture not only allows for flexibility within a single solution, but also enables the integration of solutions from different vendors. This approach promotes interoperability and avoids vendor lock-in, providing FinTech companies with the freedom to choose the best components for their specific needs, regardless of the provider.

When selecting a RegTech partner for a FinTech firm, integration and customization are vital. The RegTech partner should seamlessly integrate its solutions with the existing payment platform, APIs, and data sources of the FinTech firm. Customization is essential to meet the specific regulatory requirements and operational needs of the FinTech company, ultimately enhancing overall efficiency and effectiveness.

I co-founded a RegTech company with other partners, and we are thriving in the Brazilian market. Our primary motivation for creating this new venture was the gap left by existing players, who offer rigid, out-of-the-box systems with minimal support or collaboration with their clients. They simply provide the software, leaving Fintechs to handle the integration, navigate regulatory complexities, and critique the regulatory reports generated. We took a different approach, focusing on customized integrations and offering value-added services. We strive to be true partners to Fintechs, helping them navigate and meet their regulatory obligations. This commitment to partnership is what sets our RegTech service apart.

When you chose a reg tech partner its really important to be able able to reach out to them and escalate immediately. a good approach is to have the top management team numbers to be able to escalate in case of emergency.

Make clear support process with response time based on criticality that meets your needs. Avoid having a third party involved. Dedicated relationship manager for you as a client is a must. This is the contact point that will make the products and service work better for you and also ensure your needs and expectations are taken into account and there is a delivery on these. Reevaluation that allows adjustments and also process for compensation of failures to deliver. Have those predefined and don't deal with them ad hoc.

Selecting a RegTech partner goes beyond technology; ongoing support and collaboration are crucial. An effective partner boasts a dedicated, responsive team ready to address technical or operational queries promptly. A proactive, consultative approach is vital for identifying and tackling regulatory challenges while suggesting improvements and best practices. Importantly, a strong RegTech collaborator values your feedback, fostering an open environment for co-creation and co-innovation. This dynamic interaction ensures not only effective technological solutions but also a partnership that evolves in tandem with your regulatory needs, emphasizing the importance of continuous support and collaborative innovation.

Effective support ensures that the FinTech company receives timely assistance for any technical or operational issues, questions, or feedback related to regulatory compliance. This support can help address challenges promptly, maintain operational efficiency, and enhance overall performance. Collaboration fosters a closer working relationship where the RegTech partner can provide valuable insights, guidance on regulatory matters, and suggest improvements or best practices. By working together, both parties can co-create innovative solutions, adapt to regulatory changes efficiently, and drive continuous improvement in compliance processes and operational effectiveness.

A good RegTech partner provides collaboration with a responsive team for both technical and operational problems. They should proactively help identify regulatory challenges and provide improvements. Also, they should be open to feedbacks and willing to co-create and innovate with us, ensuring a collaborative and adaptive partnership.

Le soutien continu, c’est indispensable, mais il faut aussi que l’équipe soit capable de se mettre à la place de ses clients. Par exemple, si une entreprise FinTech traverse une phase de croissance rapide, le partenaire RegTech doit anticiper les besoins futurs, pas seulement réagir. L’aspect collaboratif est important aussi. Si les deux parties travaillent main dans la main, on obtient des solutions plus adaptées. Il est aussi essentiel que ce soutien soit disponible en temps réel pour éviter les retards et optimiser les performances.

From my experience, there is no single Regtech provider that has strengths in comprehensively covering all compliance needs. Some may be strong in KYC/B due diligence, others on transaction monitoring and yet some on TRMs. Most orgs would have no choice but to adopt a mix of solutions. An orchestration layer that can integrate well with these various tools and provide efficient workflow so that human interventions can be well managed and tracked.

In my experience a good RegTech partner for FinTech should have expertise in regulatory requirements, scalability and flexibility, automation capabilities, security and privacy measures, integration with existing systems, proactive monitoring and alerts, and comprehensive analytics and reporting capabilities. By partnering with a RegTech company that has these features, a FinTech company can effectively manage compliance risks, improve efficiency, and maintain regulatory compliance in the rapidly changing regulatory environment. By partnering with a RegTech company that has these key features, a FinTech company can effectively manage compliance risks, improve efficiency, and maintain regulatory compliance.

Beyond the above, leaders should carefully consider software usability, cost, and track record before committing to a specific RegTech partner. What's more, some scenarios may call for multiple RegTech partners to achieve full coverage over a company's compliance surface area.

The Regtech should allow for robust data analysis, this will be important for Consumer Duty requirements in the UK, and will form part of the management information in assessing whether the firm is complying with Consumer Duty.

(a) RegTech solutions should provide robust features for regulatory reporting, audit trail documentation, and compliance monitoring to facilitate transparency, accountability, and auditability. Implementing a RegTech platform with comprehensive reporting functionalities enabled our FinTech firm to generate accurate regulatory reports, maintain detailed audit trails of compliance activities, and demonstrate regulatory compliance during audits and examinations (b) The reputation and track record of a RegTech partner in the industry, including their compliance track record, client testimonials, and industry recognition, can provide valuable insights into their credibility and reliability.

Look for partners who actively collaborate with you and provide proactive guidance on regulatory changes and best practices. Align your goals and vision with the partner's to ensure a successful and sustainable collaboration.

A great Reg Tech Partner should be able to leverage AI to automate AML and KYC reviews. Very often their are too many false positive alerts that can be reduced significantly by implementing a solution that has integrated AI. Several solutions exist in the market and reduce compliance workload while ensuring the compliance team focus on real alerts.

The RegTech partner should have robust security measures to protect sensitive financial data and comply with data privacy regulations (GDPR or CCPA). They should be able to demonstrate their security certifications and adherence to industry standards (e.g., ISO, NIST).