Starling Recognized by Two Leading Regtech Research Firms for Its Innovative Approach to Culture and Conduct Risk Management

Starling Team

In November, Starling was recognized by two leading Regtech firms for it’s innovative solution to the challenge of culture and conduct risk management.  Some of the largest banks and financial institutions in the world look to Starling’s Predictive Behavioral Analytics tools in order to assess misconduct risk proactively, to improve the efficiency of investigations and risk audits, and to demonstrate improved non-financial risk management to their boards, investors, and regulatory supervisors

For the second year running, Starling was named to the RegTech 100 list by RegTech Analyst, a specialist research firm.  This year’s process to identify the leading 100 companies in the sector attracted the most entries to date.  A panel of analysts and industry experts voted from a list of over 1,000 companies. Fifty-three new companies entered the RegTech100 for 2020 and 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.  A full list of the RegTech 100 is available at www.RegTech100.com

Also, Starling received the Award for Best Solution in the Culture & Conduct Risk Management category at the annual Regulation Asia Awards for Excellence ceremony on November 13th. This category recognises solutions that are designed with specific regulatory requirements in mind, assessed on multiple criteria, including the ease and speed of implementation, flexibility, robustness, scalability, transparency, technical support, cost and return on investment for end clients.

Regulation Asia received over 100 submissions – twice that of 2018 – and the Regulation Asia Awards for Excellence increasingly become a sought-after industry recognition in the regulatory and compliance space.  An external panel of 10 judges – comprising subject-matter experts from banks, associations, law firms, consulting firms – was tasked with deciding the winners in each category.

The review panel conducted interviews with the shortlisted firms and, in some cases, their clients, in order to obtain a more detailed picture of the strengths and weaknesses of each firm and draw clear comparisons across entrants.  Judges made their decisions independently. 

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 cascade into crises.

About RegTech Analyst and the Regtech 100

The RegTech Analyst platform offers business intelligence on the RegTech, risk management tech and cybersecurity sectors. RegTech Analyst is the pre-eminent provider of data, research and analysis on the global RegTech market. RegTech Analyst covers every trend, every investment and profiles every company that provides a technology solution for compliance, risk management or cybersecurity delivering essential intelligence for mission-critical business decisions.   For more information, please visit:  www.RegTechAnalyst.com

About Regulation Asia

Regulation Asia is the leading source for actionable regulatory intelligence for Asia Pacific markets. Since 2013, their audience and subscription base has grown to include regulatory bodies, exchanges, banks, asset managers and service providers, allowing them to play a key role in the regulatory agenda.

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HSBC Warned Twice by Bank of England on Conduct Risk Control | Bloomberg

Starling Team
For two years in a row, the Bank of England’s Prudential Regulatory Authority (“PRA”) has warned HSBC that it isn’t doing enough to manage non-financial risks.

According to Samir Assaf, HSBC’s top investment banker, on a recent conference call the PRA told the firm that the progress made on non-financial risk management was insufficient. These non-financial risks are related to staff misconduct, bank culture, and compliance.  Assaf says the warning was reiterated earlier this year and he considers this an “emergency” that requires immediate attention. 

According to a confidential survey by the U.K.’s Banking Standards Board, compared to 6 other investment banks, HSBC ranked last when staff answered questions about their colleagues “acting honestly and ethically,” “flexing ethical standards to make career progression” and “turning a blind eye to inappropriate behavior.”

The current travails at HSBC reflect increasing attention to “soft risks” — such as firm culture and staff misconduct — from bank regulators in the UK and world-wide.  It also demonstrates that an industry-wide over reliance on surveillance and monitoring tools has proven unsuccessful in curtailing non-financial risk.

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Why Banks’ Top Brass Should Welcome Tougher Regulation | The Irish Times

Starling Team

A piece by The Irish Times explains that too, some, culture sounds soft; like “happy clappy” and “motherhood and apple pie” but it isn’t.

A good internal culture is what makes your business an employer of choice. It impacts customer interaction and builds loyalty. It also lowers the risk, and cost of doing business. So, Improving culture is best for everyone, from the customers to the owners of banks.

Still, trust in Irish banking is low and this issue isn’t unique to Ireland. It’s a global concern. “This is why I would embrace legislation that promotes individual accountability and makes it easier for regulators to fine, reprimand or disqualify senior bankers who create detriment and damage as a result of their poor values and bad decisions. These failures should result in bankers being held to account in a clear and transparent way,” says Francesca McDonagh, group CEO of Bank of Ireland

To be sustainable in the long term, banking has to change. One step in the right direction is enhancing individual accountability.

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John Seely Brown Joins Starling Advisory Board

Starling Team
Washington, DC – Starling, an applied behavioral sciences technology company, has announced the appointment of John Seely Brown to its distinguished Scientific & Academic Advisory Board.  He joins current advisors Thomas Malone (director of MIT’s Center for Collective Intelligence), Nicholas Christakis (director of Yale’s Human Nature Lab), and Karen Cook (director of Stanford’s Institute for Research in the Social Sciences).

Known to most as “JSB,” John Seely Brown was the Chief Scientist of Xerox Corporation and, for two decades, director of the renowned Xerox Palo Alto Research Center (PARC) — birthplace of the PC, Ethernet, laser printer, and other ground-breaking innovations.
 
JSB served for fourteen years on the board of directors at Amazon and has served on the boards of the MacArthur Foundation, In-Q-Tel, and numerous other firms, both public and private.  A leading thinker and writer on the AI-enabled workplace of the future, JSB has been awarded 11 honorary doctorate degrees, and is a member of the American Academy of Arts and Sciences, the National Academy of Education, and is a Fellow of the American Association for Artificial Intelligence.  He has published nine books and over a hundred papers in scientific journals.
 
“Starling is building what I like to call ‘Epic Tech,’ and I’m delighted to join their advisory team,” said Seely Brown.  “Invisible networks of social ties within organizations facilitate the flow of critical but intangible dynamics, like trust, identity, and social capital.  These dynamics shape how we think, what we believe, and how we behave,” he added.  “By making such forces visible and actionable, Starling’s Predictive Behavioral Analytics tools enable management foresight, and allow us to work proactively to mitigate behavioral risks and to optimize organizational performance.  This is important work.”
 
“JSB is a Silicon Valley legend,” said Starling founder & CEO Stephen Scott.  “For decades he has led the way in demonstrating how complex systems science can – and must – be brought to the design of solutions to real world challenges.  In so doing, he has inspired countless tech pioneers, and we are incredibly fortunate to have him with us at Starling,” he added.  “I look forward to building our next-generation management tools with his guidance and continued inspiration.”

 About John Seely Brown

JSB is currently the Independent Co-Chairman for Deloitte’s Center for the Edge, where he pursues research on institutional innovation and a reimagined workplace.  In his more than two decades as head of PARC, JSB transformed the organization into a truly multidisciplinary research center, integrating social sciences and the arts into the traditional physics and computer science research, and expanding the role of corporate research to include topics such as the management of radical innovation, organizational learning, and complex adaptive systems. 
 
JSB has received 11 honorary doctorate degrees in four fields (science, design, public policy, humane letters) and a PhD from the University of Michigan.  He is a member of the American Academy of Arts and Sciences, the National Academy of Education, and a Fellow of the American Association for Artificial Intelligence.  JSB has published nine books and well over a hundred papers in scientific journals.  His most recent book is:  Design Unbound – Designing for Emergence in a White Water World, with Ann Pendleton-Jullian.

JSB is a visiting scholar and adviser to the provost at the University of Southern California, where he facilitates collaboration between the schools for communication and media and the Institute for Creative Technologies.  He was a co-founder of the Institute for Research on Learning, and his personal research interests include new approaches to learning, digital youth culture, digital media, and the application of technology to accelerate deep learning within and across organizational boundaries—in brief, to design for emergence in a constantly changing world.

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 cascade into crises.
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Bank of England Tells Insurers to Improve Workplace Culture| The Guardian

Starling Team

The Bank of England is pushing insurance companies to improve their corporate culture as cases of sexual harassment and bullying plague the industry.

In a letter to chief executives of general insurance companies, the PRA’s acting director of insurance supervision, Gareth Truran said “Instances of non‐financial misconduct could speak to personal integrity and may have implications for our view of the fitness and propriety of individuals within our senior managers and certification regime.”

This is unprecedented for this sector, as conduct will directly impact the employment of all individuals in the insurance space.

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