January 17, 2017
Compliance consumes innovation opportunities
Just to understand how expensive and resource-consuming compliance is, professionals have emphasized the following stats:
Compliance is undoubtedly a critical part of a sustainable business within the financial system. It is, however, one of the most restraining forces, absorbing substantial financial and human resources, which instead could be reallocated for innovative growth and development.
While there are important beneficial implications of appropriately stringent regulatory environments across industries, accelerating the pace of innovation in those industries puts institutions under stress of timely response to regulatory changes and increases the risk of non-compliance expenses. Meanwhile, market saturation with tech-powered competitors pushes institutions into the hunt for efficiency-boosting solutions in order to reduce costs and release talent for an appropriate response to changing market conditions.
Regulatory technology (RegTech) forever shuttered the way compliance has been ensured and presented the market with over a hundred RegTech innovators, applying the power of modern technological advancements to compliance. Within itself, RegTech is a diverse community of bright entrepreneurs solving various regulation-related problems for financial institutions, among which are KYC/CDD, AML, risk management, market surveillance, fraud detection, etc. In that regard, RegTech ‘shares a wall’ with FinTech startups that are offering solutions for same problems, but are not particularly compliance-oriented – cybersecurity companies, real-time fraud detection companies, a range of identity verification solutions, etc.
There is, however, one particular class of innovators within RegTech that has probably the most profound effect on unleashing innovation in the financial services industry by driving down compliance and non-compliance costs – data management and reporting solutions providers that allow financial institutions to tackle rapid change, regulatory pressures and increasing global competition.
Billions spent by financial institutions on comprehending and reconciling changing regulatory requirements can be beneficially reallocated, enabling institutions to pursue initiatives that will transform the business, ensure its sustainability and success in a highly competitive market.
As the banking sector goes through enormous changes under the influence of such factors as digitization, the rapid growth of value streams and data accumulation, compliance requirements also evolve. Therefore, resources necessary for monitoring and adaptive response multiply rapidly. The same is happening with expenses on non-compliance issues settlements, resulting in billions lost for investments in innovation programs instead.
RegTech companies providing data management and reporting solutions, therefore, are critical enablers of cost reduction and innovation adoption. One of the most interesting representatives of that class is HEXANIKA™, which has developed simple, smart, and efficient software that harnesses big data and machine learning to automate data ingestion and rules creation for analytics and reporting.
In addition to innovative patented software, HEXANIKA™ has built an ecosystem of infrastructure and deployment in association with FIS, IBM, Accenture, Synpulse and other consulting firms that enables banks to leverage the technology on secured bank-ready cloud and subscribe to managed services, making HEXANIKA™ a completely unique offering.
HEXANIKA™’s software enables scaling rules across varied reports, regulators and geographies, providing 100% data lineage and transparency; saving time by 40%; driving down the costs by up to 40% and enhancing data quality, accuracy and consistency by 35%.
"What we want to help banks do, is reduce costs, reduce dependency on [hiring compliance officers and keeping them up to date] and help banks focus on their business rather than regulatory compliance, which is what they want to do," shared Yogesh Pandit, a HEXANIKA™ Co -founder and CEO.
HEXANIKA™’s solution can be easily deployed on premise or on cloud infrastructure – allowing businesses to prioritize the core benefits of each option from complete control and responsibility to speed, scalability and flexibility. The vital benefits that HEXANIKA™ delivers to financial institutions are:
The year 2016 was eventful for HEXANIKA™ – the company got wide recognition by the industry professionals as one of the most promising and forward-thinking enablers of innovation in the financial services industry.
The uniqueness of HEXANIKA™ solution is indicated by its success and recognition in the dedicated community of professionals – HEXANIKA™ was selected:
HEXANIKA™ has been selected to present at the FIS RISC Summit 2017. The Risk, Information Security and Compliance (RISC) Summit is a premier risk and compliance conference that will be held in San Diego from Jan 18–20, 2017. This unique conference sponsored by FIS presents an opportunity to learn from regulators and other experts about upcoming regulatory risks in 2017 and how best to manage them.
HEXANIKA™ will be involved in the below activities: