Banks look to fintech, regtech to innovate

To address rapid changes in business and consumer behaviour, not to mention a decades-old payments system, banks are making innovation a top priority, reveals a report by PwC. They want to improve the client banking experience and provide web and mobile services that don’t require trips to bricks-and-mortar buildings.

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Advisors could do without those trips, too. The report says back-office efficiency will be improved through automation, though exactly how isn’t certain. Improvements might involve fintech, block chain technology and robotics. The report says artificial intelligence could be applied in call centres and conversational banking channels such as trading desks and fraud management centres.

Further, banks are looking at regtech solutions to automatically embed compliance into their processes, lightening the burden on compliance teams. However, the risks of leaving day-to-day compliance tasks to technology aren’t well understood, nor is it clear how to develop controls for these automated systems.

Interestingly, some in the industry aren’t finding clear benefits from fintech innovations. An informal January 2017 survey of fund managers, regulators, exempt market dealers, portfolio managers and law firms, for instance, found only 7% of respondents said changes in fintech are helping with firm efficiency.

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For more details on regtech and the big banks’ performance in 2016, read the full report.

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Staff

The staff of Advisor.ca have been covering news for financial advisors since 1998.