Frankfurt am Main, January 15, 2019 – Around 850 representatives of banks, insurers, central banks, supervisory authorities and regulators from over 40 countries met at the 26th RegTech Convention on November 26-27, 2019, to discuss the current challenges in regulation and technology facing the financial sector.
Under this year’s motto "Transformation & Agility", the financial market participants exchanged their views on the ongoing transformation process in the financial sector and the associated opportunities and risks in top-class presentations and panel discussions.
The participants agreed that today – more than a decade after the outbreak of the global financial crisis – the financial sector is much safer. However, they also recognized that there is still considerable regulatory pressure and pressure to innovate, which will continue to increase in the upcoming years.. This is due to the increasing industrialization of supervision and the rapid development of technological possibilities, including the increasing use of RegTech and SupTech. Solutions to the aforementioned challenges were discussed in various concurrent specialized conferences for banks, central banks and insurers.
Banking Conference participants noted that the current business models and vertical integration of banks would have to change. Areas that are not part of the core business, such as reporting, would have to be outsourced. The vision of Tomas Sedlacek, who opened the conference with a brilliant keynote speech on the future of economics, capitalism and regulation is that banks act as "family doctors" or "butlers” who take care of the rather “boring things” in life. Bundesbank executive board member Prof. Dr. Joachim Wuermeling spoke of the need for banks to reinvent themselves, literally completely taking themselves apart and then reorganizing themselves again. The digital transformation is a necessity if the banks want to stay competitive. Martina Drvar, Vice-Governor of the Croatian National Bank and member of the Management Board of the European Banking Authority (EBA), called for a fair, flexible and forward-looking regulatory system with the recognition of banks' changing business models by supervisors, more regulation instead of directives, and monitoring instead of regulating financial innovations.
Other key topics were how to reduce the costs of regulation and how innovative technologies can contribute. Participants agreed on the need for harmonization, standardization and industrialization and on the importance of initiatives such as BIRD (Banks' Integrated Reporting Dictionary) and IReF (Integrated Reporting Framework), or the EBA feasibility study on integrated reporting. A requirement for the success of such initiatives is that all participants must take the plunge and start cooperating with each other.
As in previous years, the second conference day focused on BearingPoint RegTech’s products and services and their users, the further development of the new software generation Abacus360 Banking, and the new outsourcing offer, the RegTech Factory, a digital "factory" for regulatory reporting in Europe.
Impressions and highlights of the 26th RegTech Convention can be found at https://www.regtech-convention.com/en/highlights-2019/. The 27th RegTech Convention will take place in Frankfurt on November 25-26, 2020.