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0:00
I'm Jo Anne Barefoot.
I'm CEO of Barefoot Innovation Group and
Cofounder of Hummingbird Fin Tech and host of the podcast show Barefoot Innovation,
and I'm delighted that you can join me for my talk today on RegTech.
0:17
So starting with the context of where we are now,
the regulatory and legal process has always been word-based and has always been linear.
Not many people believe that but I'm confident that it's true for two reasons;
one is it's already starting to change,
and the other is that the regulatory world really doesn't have the option to hold
still and use old technology as new technology transforms finance.
The financial sector is being deeply disrupted and be made by technological change and
it is the most highly pervasively complexly regulated sector of all,
and as a result,
the regulatory issues are going to have to change.
So I'm confident that the regulatory process is going
to change because of the pervasiveness
of regulation in the financial sector
and the fact that really there's no option not to change.
1:14
I think it helps to start with a definition.
We can define RegTech as the application of new technology to
regulation-related activities in order to shift them
from analog to digital and computational models,
in order to bring about dramatic gains in effectiveness, efficiency, and scalability.
An important aspect of this is that we've traditionally thought of there being
a binary choice in regulatory matters between
either having higher better results at a higher cost.
Or if you want to cut the cost and gain efficiency,
you're going to lose some performance and public policy benefits.
The new technology is making it possible to break that dynamic and make
simultaneous gains and effectiveness and
also cost reduction or at least gains in efficiency.
