There is a plethora of new and effective compliance technology out there. Yet banks insist on clinging to their old methods—and risk making the same mistake that the tennis player Björn Borg did. "He had a disastrous comeback with his wooden tennis racket in a world that by then had changed,” according to Åke Freij, regtech expert at the management consultancy Capco.
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Åke Freij is head of risk and regulatory management for Capco Nordics. In Capco’s scientific journal, The Journal of Financial Transformation, he speaks of the increased need for regtech in the wake of more complex financial regulations since the financial crisis of 2008.
“We have gone from simpler rules that only asked banks and insurance companies to report some figures sometimes, to having them keep track of processes and customer relationships. It has become more about the relationship with the customer in a complex ecosystem where data is shared. You no longer can build compliance solutions internally anymore, which creates opportunities for new regtech actors.”