Complilearn last week attended the first of a new series of events in London focused on Regulatory Technology. The ‘RegTech for London’ event was hosted by Matt Elton of Finnolux and brought together a variety of compliance and regulatory leaders from around the world.
As part of the event, Complilearn MD Sam Gibbins presented a session on Understanding Your Customer, where he looked at some of the stark jurisdictional variances to current Anti Money Laundering approaches. Even from a fairly simple standpoint, global adoption of the Risk Based Approach has been, and remains, very inconsistent, meaning there is no singular way of looking at how to improve the organisational approach to AML.
A further discussion point centred on the key fundamental differences between Know Your Customer and Due Diligence. All too often KYC and DD are bundled together as one and the same, which provides a false starting point not only for compliance, but more broadly for the revenue side of the business.
A key outcome of the discussion was the focus on RegTech being Trust as a Service. In an earlier side conversation with some participants, Complilearn was described as ‘Training as a Service’, and, coupled with ‘Trust as a Service’, provides an interesting take on what has been traditionally viewed as a Client/Vendor model.
The idea of providing the Service based on the model of Trust certainly seems more in line with most RegTech companies approach of building long lasting relationships, and not focusing on transactional sales. The question now is whether this idea will take off whilst dealing with the myriad other challenges faced by providers.
As ‘Service’ providers become more attuned to their client needs, hopefully the level of Trust placed in them will increase. Recent cases of RegTech adoption certainly seem to indicate that there is a solid basis for this relationship, with excellent results based on industry adoption, enabling significantly improved outcomes. Long may it continue.