How to succeed in the new tech paradigm?

Explore the multifaceted journey of transformation in the financial sector, focusing on the challenges of modernizing legacy technology while onboarding new tech like cloud and AI. Industry leaders across financial regulators and the regulated discuss how the financial industry can adapt to rapid technological changes, the role of regulators, the effectiveness of sandboxes, innovative RegTech implementations, lessons learned, and future regulatory impacts. 

Key takeaways from the panel include: 

• Financial institutions are simultaneously adopting cloud technologies, modernizing legacy systems, and improving data infrastructure. This requires careful sequencing and prioritization to manage limited resources effectively. 
• Aligning transformation roadmaps with regulatory requirements and stakeholder expectations is crucial for successful technological advancements. 
• Finding and retaining skilled professionals is a significant challenge, often requiring reliance on third-party platforms to bridge the gap. 
• Embracing real-time data processing and API-based delivery systems enhances efficiency and regulatory compliance. 
• Regulatory sandboxes are effective in allowing firms to test new technologies safely, supporting innovation and faster market entry. 

“We pursued much more of a best of breed strategy, but we didn't succeed all the way because our own maturity of being able to orchestrate extract the full potential wasn’t there. So then we switched into much more of a platform-centric strategy which aligns better with our group's maturity, capabilities, and available resources. That's the first lesson we learned.”

Kevin Jiang, Head of Transformation & Information Management, Länsförsäkringar

"Our focus is on safe adoption, and that's why we create mechanisms like regulatory sandboxes for those things to be tested in a safe way."

Lauren Dixon, Senior Manager for Data Collection, Financial Conduct Authority

“Financial institutions and regulators need to consider the cost of transformation versus the cost of adoption.”

Antoine Moreau, Chief Information Officer, Regnology