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Michel
Gabrysiak
President of the Finance Foundation

Sibos : Facing fast growing financial technology and pressure of proliferating regulations, companies need to act now.
December 21, 2014 , Michel Gabrysiak - Finance tech
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            Sibos : Facing fast growing financial technology and pressure of proliferating regulations, companies need to act now.

 

 

Discussing key financial issues at Sibos 2014

Sibos is an annual financial services event organized by SWIFT. It gathers academics and practitioners from the financial and technology industry. This year in Boston, topics such as compliance and new technology are discussed with a focus of their impact on the industry business 

and operations line.

 

Innovation vs compliance

Speed and scale of technology are major drivers in financial industry innovation. New ways of electronic payments are now available. For example, since 2009, a new currency, known as crypto-currency gained interest and became more and more widely used. This virtual money such as Bitcoin is shared peer-to-peer and self regulated without overlooking by any financial authority.

 

New payment infrastructures are also put forward. For example, Target2-Securities (T2S) is a financial infrastructure allowing securities settlement in central banks’ funds across Europe. Another example discussed at Sibos is the Single Euro Payments Area (SEPA) improving the efficiency of cross-border payments.

 

Nevertheless, financial organizations are still grappling with proliferating and pressing regulations causing higher costs, risk and compliance burden.

 

Tools in order to achieve

In order to comply with regulatory demands, companies consider recently managing their risk using big data and analytics.

 

One of the main issues within companies is the lack of a centralized source of in-/external information and data. To address this issue, integrated information management is required. The idea is to collect and to streamline information within the company into a centralized source in order to improve decision-making. To this end, a compliance analytics tool has been presented at a Sibos session.

 

The rise of cloud-based data solutions generates interesting opportunities to share information. The SWIFT KYC Registry is an effort in that direction. It provides a standardized, secure source of validated information to comply with different regulatory regimes worldwide. Subscribers to the Registry should significantly reduce their compliance risk.

Non-compliance is can be interpreted as a lack of appropriate data management and collaboration between departments. The risk for the company could materialize by a regulatory fine, an excessive cost of data management and above all weakness for a sustainable company.

Information governance is the necessary step towards more efficiency in data management.

In sum, leveraging technology tools with effective information governance and analytics provide more effectively and profitable business solutions.

 

Go East

Next year, Sibos will take place in Singapore. The Asia-Pacific region has become a major driver for global economic growth with rapid financial integration.

 
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