Starling Selected for 2019 Global RegTech 100 List

Starling Team

Starling Selected for 2019 Global RegTech 100 List

Washington, DC – Starling, an applied behavioral sciences RegTech company, announced that it has been selected for the 2019 Global Regtech 100 list. The RegTech 100 List recognizes pioneering companies around the world that are transforming compliance and risk management.

The 2019 list was compiled by RegTech Analyst, a specialist research firm, based on input from a panel of analysts and industry experts. The finalists were recognized for their innovative use of technology to solve a significant industry problem, or to generate cost savings or efficiency improvements across the compliance function.

For 2019, the panel considered applications from over eight hundred RegTech firms around the world, double the number from the year before. This reflects the massive growth in this sector as banks and financial institutions grapple with increased pressure from both the public and regulators. Since the beginning of 2016, over $4 billion has been invested in RegTech companies.

Starling approaches the problem of misconduct in a novel way that equips firms to anticipate risk and to be proactive in managing it. Through its Predictive Behavioral Analytics technology, Starling combines artificial intelligence with the latest advances in behavioral science and organizational network analysis to provide insight into where challenging behaviors are likely to emerge and how they will spread, contagion-like through a firm. Unlike traditional surveillance and monitoring tools that are intrusive and backward looking, Starling guides managers to identify root behavioral causes of misconduct and to monitor changes in near real-time.

“We’re pleased to be included in this year’s RegTech 100 List,” said Starling founder and CEO Stephen Scott. “Our predictive behavioral analytics platform positions management for proactive engagement where culture and conduct related challenges impair firm performance or result in operational risks. We expect the RegTech market to expand in the years ahead, as customers experience how tools like ours permit for the more timely, efficient, and effective application of scare management resources.”

A full list of the RegTech 100 is available at www.RegTech100.com. More detailed information on all companies as well as in-depth industry analysis is available in the Global RegTech Review.

ABOUT STARLING
Starling is an applied behavioral sciences company using machine learning and network science to build what it calls “augmented management intelligence” tools. Its Predictive Behavioral Analytics technology reveals the performance impact of relational trust dynamics within organizations. Based on this data, Starling’s proprietary algorithms generate actionable insights, displayed through intuitive and customizable dashboards, enabling business leaders to drive improved performance and desired culture – and to identify and mitigate behavior-related risks before they are permitted to cascade into crises

ABOUT REGTECH 100
The REGTECH 100 is an annual list of 100 of the world’s most innovative RegTech companies. These are the companies every financial institution needs to know about as they consider and develop their mission critical RegTech and digital transformation strategies. The list has been updated for 2019 in the face of the new regulatory challenges financial institutions are facing. It will help senior management at compliance, technology and innovation divisions sort through all the suppliers and identify companies who are most likely to have a lasting impact on the industry.

Expand

HKMA Seminar Led by Starling Focuses on Applications for Behavioral Science in Bank Supervision

Starling Team

Starling led a seminar for over 100 senior bank executives in an event sponsored by the Hong Kong Institute of Bankers (HKIB) on behalf of the Hong Kong Monetary Authority (HKMA). The HKIB has been a leader in education and professional training for the Hong Kong banking industry for over 50 years. A critical part of this mandate is collaboration with the HKMA to expose bank leaders to cutting edge developments in compliance and regulatory supervision. In this context, Starling was invited to deliver a two-part seminar on new applications of behavioral science and technology to the challenge of managing behavioral risk.

The first session was led by Dr. Mirea Raaijmakers, Global Head of Behavioural Risk at ING and former Director of Culture and Conduct Supervision for the Dutch National Bank (DNB). Dr. Raaijmakers drew on her experience in esupervision at the DNB as well as in management at ING to discuss both the opportunities and challenges in managing behavioural risk.

For the second part, Stephen Scott, Starling’s Founder and CEO spoke about how new advances in technology mean that RegTech solutions are now available that bring scale and depth to these efforts to improve the management of behavioural risk.

Expand

Risk Governance and the Politics of Rage | Starling

Starling Team

A renewed focus on effective governance is gaining traction. Whether in the form of initiatives such as French President Macron’s Paris Peace Forum or BlackRock CEO Larry Fink’s challenge regarding a new model of corporate governance. In each of these instances, the solution proposed to respond to caustic politics and public discord is to restore trust in the core institutions of government, civic society, and business.

Firms demonstrate good governance when they balance the profit motive with responsible management and a customer-centric ethic. This is particularly acute for the banking sector, where misconduct, self-dealing, and financial crime have damaged the reputations not only for individual banks, but for the sector as a whole.

In this article by Starling’s Stephen Scott and Karen Cook, the co-authors argue that effective governance is not only a social good – but it is in fact critical to profitability and perhaps even long-term survival. “Where a firm is seen to ‘cheat’ or to engage in bad-acts, faith in such a firm will weaken. Though typically spoken of in anodyne terms such as brand impairment, reputational or ‘headline’ risk, and loss of ‘good will’ (in accounting-speak), bottom-line impact is demonstrable.” When failures impact a number of firms, the loss of trust can impact entire industries. Even ten years after the Great Financial Crisis, the follow-on effects continue to be felt around the globe.

Leveraging the metaphor of the Four Horsemen of the Apocalypse, the authors describe how failures in governance and a loss of trust impact each of the four key stakeholders of the firm, regulators, investors, customers, and employees. The impact of such failures involve real costs in the form of loss of increased regulatory scrutiny, loss of investment, declining sales, or a failure to attract and retain high-value employees.

The authors conclude by calling for a new trust infrastructure that relies on new standards of governance.

Read the article: Risk Governance and the Politics of Rage

Stephen Scott is the Founder & CEO of Starling. Karen Cook is Professor of Sociology and Director of the Institute for Research in the Social Sciences at Stanford and an Academic Advisor to Starling.

Expand

Starling’s Global Trust Initiative to be Featured at Paris Peace Forum

Starling Team

Starling, an applied behavioral sciences ‘RegTech’ company, announced that it has been selected to present its Global Trust Initiative at the inaugural Paris Peace Forum to be held November 11th to 13th, 2018 at La Grande halle de La Villette in Paris, France.

Convened by French President Emanuel Macron to commemorate the 100th anniversary of the Armistice at the close of WWI, the Paris Peace Forum is organized to showcase various governance solutions presented by project leaders hailing from 116 countries and all walks of civil society: foundations, academia, NGOs, religious organizations, and – most notably – private business. “Peace is linked with global governance,” the organizers contend, with reference to corporate as well as civic governance.

Starling launched its Global Trust Initiative to demonstrate how its pioneering Predictive Behavioral Analytics software platform supports more timely, efficient and effective management of culture and conduct risk within banks. Misconduct in the financial sector is not limited to direct financial costs; it also drives an erosion of trust in banking and extends a decline in faith in ‘the system.’

The Global Trust Initiative will see a cross-border trial of Starling’s platform across banks headquartered in the world’s major financial centers, including the UK, EU, US, Canada and Australia. Working with one bank and one primary regulator in each of those jurisdictions, the Initiative will further industry best practices and ensure that lessons learned are shared among regulators and firms.

Starling approaches the problem of managing misconduct in a novel way, combining machine learning with the latest advances in behavioral science and organizational network analysis to identify where problematic behaviors are likely to emerge and how they may spread, contagion-like, to permeate a firm. Starling’s solution does not rely on expensive and time-consuming culture surveys. And unlike traditional surveillance and monitoring tools that are intrusive and backward looking, Starling guides managers to identify the root behavioral causes of misconduct and to monitor changes in real-time.

The Paris Peace Forum received some 900 applications from governance project leaders around the world hoping to be featured at the event. Starling’s Global Trust Initiative was selected as one of 21 projects to be represented in the New Technologies category, alongside projects sponsored by companies like Microsoft, Google and Facebook. Heads of State and government representatives from over 80 countries are expected to attend the Forum. Participants will meet with project leaders, participate in debates and open discussions, and network with other global governance leaders.

ABOUT STARLING
Starling is an applied behavioral sciences company using machine learning and network science to build what it calls “augmented management intelligence” tools. Its Predictive Behavioral Analytics technology reveals the performance impact of relational trust dynamics within organizations. Based on this data, Starling’s proprietary algorithms generate actionable insights, displayed through intuitive and customizable dashboards, enabling business leaders to drive improved performance and desired culture – and to identify and mitigate behavior-related risks before they are permitted to cascade into crises.

Expand

Starling educating the Hong Kong banking industry on use of AI for bank governance and supervision

Starling Team

Regulators are asking critical questions as the phenomenal pace of advances in RegTech continues. As firms and regulators adopt more AI-based tools, it is clear that more attention will need to be placed on the topic of transparency. This article from the South China Morning Post describes how regulators are focusing on these types of questions as the technology begins to enter the mainstream. As AI-based take on more decisions in the bank, there will be many cases where it will be critical for bankers and regulators to understand how that decision was made.

Starling has long recognized that as AI becomes integrated into Fintech and Regtech applications it will be critical to work closely with regulators to educate and share real world experiences. It is for this reason that Starling has actively cultivated relationships with regulators across the globe.

In the spirit of education, Starling has been invited by the Hong Kong Montetary Authority (HKMA) to speak at a seminar this coming November on the subject of AI applications in Risk Management and Performance Optimisation. Starling’s Founder and CEO, Stephen Scott, will be joined by Mirea Raaijmakers, the Global Head of Behavioral Risk at ING to speak about practical examples of the application of behavioral science and RegTech tools in the context of improving bank governance and supervision.

We hope to see you there!

Read Starling’s Event Announcement: Harnessing Behavioural Science and AI for Risk Management and Performance Optimisation

Read the article: HKMA’s ‘regtech’ push raises transparency concerns at financial institutions

Expand