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Starling, a leading RegTech company, was selected to be one of only a dozen startups featured at the “Innovation Hub” during the Institute of International Finance (IIF) Annual Meeting on October 7-8, 2016 in Washington, DC.
With 1500+ participants from over 75 countries, representing the leading figures in global finance, the 2016 IIF Annual Membership Meeting featured over 150 speakers and 50 panels on topics ranging from Regulatory Challenges, Innovation & Fintech, and The Future of Finance, among others. The Innovation Hub provided a showcase of technologies and concepts with the potential to transform financial services including advanced data science, the blockchain, and regtech.
Starling founder and CEO, Stephen Scott, observed, “In the years since the Financial Crisis, the world’s largest banks have paid fines for misconduct in excess of $275 billion, in the aggregate. Conduct risk now represents an existential threat to banks and other financial institutions, and the market is demanding new approaches to mitigating such risk.”
CHICAGO — An increasing number of companies are using HR data analytics to predict business performance, making it one of the top trends driving change in human capital management.
In “HR Technology Disruptions for 2017: Nine Trends Reinventing the HR Software Market,” Deloitte Consulting said human resources analytics is helping companies predict fraud and detect compliance violations, identify top employees at risk of quitting and find the drivers of unplanned absences among staff.
Stephen Scott, a risk specialist, and Jeffrey Kupfer, a former U.S. Treasury official, are co-founders of Starling Trust Sciences.
“There was no incentive to do bad things.”
With this short statement, Wells Fargo WFC -0.38% CEO John Stumpf summed up the central problem with efforts to reform culture and behavior in banking: an emphasis on “tone from the top” that fails to recognize that it is the “tone from the middle” that truly shapes organizational behavior.
“Everything we do is built on trust.” So begins Wells Fargo’s vision and values statement, featured prominently on its website. It goes on to characterize the firm’s culture: a “pattern of thinking and acting with the customer in mind … the habit of doing the right things, and doing things right.”
Financial institutions and regulators that harness the opportunities and manage the risks of adopting regtech solutions will reap big rewards.
Regulatory compliance is timeconsuming and expensive for both financial institutions and regulators. The volume of information that parties must monitor and evaluate is enormous. The rules are often complex and difficult to understand and apply. And much of the process remains highly labor-intensive, when even the most automated solutions are often incompatible with other systems and, even today, most still depend heavily on manual inputs.
As a result, costs have risen significantly for financial institutions in recent years. According to Federal Financial Analytics, a policy analysis firm, the six largest US banks spent US$70.2 billion on compliance in 2013, twice the US$34.7 billion spent in 2007.1 In 2015, the Financial Times estimated that some of the world’s largest banks each spent an additional US$4 billion a year on compliance since the financial crisis.2