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A-Team Insight Briefs

Broadridge Report Reveals Damage of Poor Personalised Communications

Broadridge Financial Solutions has released a rather telling report for those at financial institutions responsible for customer onboarding and client lifecycle management. The report shows that personalisation in communications can make a significant impact on customer loyalty. Some 35% of 3,004 consumers surveyed in the US and Canada said companies they use need to improve communication experiences, while 25% stopped doing business with a company specifically due to poorly personalised communications, a percentage that grows to 35% among millennials.

Vela Partners Smart Order Router Provider CoinRoutes

Vela, a trading and market access technology firm, has partnered CoinRoutes, a provider of consolidated data, smart order routing (SOR) and algorithmic trading for crypto investors, in order to extend its crypto-asset SOR offering and achieve optimal aggregate prices across selected crypto exchanges. Peggy Sullivan, chief of staff at Vela, says, “Our partnership with CoinRoutes allows traders to leverage sophisticated SOR and algorithmic strategies to achieve best execution.”

IHS Markit Adds ESG Solution for Private Capital Markets

IHS Markit has introduced an environmental, social and governance (ESG) data collection and reporting solution for private equity (PE) firms, venture capital (VC) firms, their portfolio companies and investors. The solution is part of iLEVEL, a platform connecting participants in private capital markets. ESG reporting in iLEVEL covers 29 metrics relevant to investors seeking data from portfolio companies and PE or VC funds. The metrics include CO2 footprint, diversity in employment and independence of board members, helping general partners and limited partners apply non-financial data to their value creation and risk management processes, two areas of interest for investors.

RegTech Could be Worth $7.2bn by 2023

Spending on RegTech is forecast to climb to US$7.2 billion by 2023, from US$2.3 billion in 2018 – a CAGR of 25.4% during the forecast period 2018-23. The Asia Pacific region is expected to hold the highest potential, and will see the fastest growth over the five-year period. The compliance management solution segment is expected to see the biggest growth in terms of sectors. The predictions come from the recently-released ResearchAndMarkets.com report: “Global Regulatory Technology (RegTech) Market: Drivers, Restraints, Opportunities, Trends, and Forecast up to 2023.”

ChartIQ Raises $17.4 Million in Series B Funding

ChartIQ, a provider of HTML5 real-time data charting software and most recently a desktop integration platform that connects disparate applications into a unified desktop solution, has completed Series B funding, led by German investor Digital+ Partners, of $17.4 million. The company will use the funding to increase hiring efforts, expand its headquarters in Charlottesville, Virginia and invest in research and development. It currently employs 50 staff globally and includes nine of the largest global investment banks among its customers. In total, ChartIQ has raised over $20 million in funding since its founding in 2012.

Shield FC Wins Deloitte RegTech Challenge

Shield Financial Compliance (Shield FC) has been named by Deloitte as one of the most innovative start-ups using artificial intelligence (AI) to solve regulatory challenges in the financial sector.

Shield FC’s cross-regulation compliance platform provides a 360 view of all electronics communications and trades, making compliance more efficient and ROI driven.

“As Deloitte, we are proud to create for Shield FC the opportunity to be a part of our innovation ecosystem that aims to solve real business problems and meet our clients’ needs,” said the Deloitte RegTech Challenge team.

Theta Lake Raises $5m in Seed Funding

Theta Lake, an AI-based RegTech provider for video communication compliance based in California, has raised $5 million in its first round of Series A seed funding led by Neotribe Ventures and Firebolt Ventures.

Theta Lake’s platform uses AI to help compliance teams more effectively scale their compliance risk detection and workflow for supervising communication on modern video, voice, and unified collaboration systems.

Brussels Issues Draft Guidelines for AI Regulation

In December 2018 the European Commission’s High Level Expert Group on Artificial Intelligence (AI HLEG) released its ‘Draft Ethics Guidelines for Trustworthy AI’, a working document for stakeholder engagement that cites AI as “one of the most transformative forces of our time.” The guidelines emphasise that “an ethical approach to AI is key to enable responsible competitiveness” and provide a list of requirements including Accountability, Data Governance, Design for all, Governance of AI Autonomy (Human oversight), NonDiscrimination, Respect for Human Autonomy, Respect for Privacy, Robustness, Safety, Transparency. A final draft is expected in March 2019. The Guidelines are not intended as a substitute to any form of policymaking or regulation, which will be dealt with in the AI HLEG’s second deliverable: the Policy & Investment Recommendations, due in May 2019.

Australia Expands Accountability Regime

The recently-released report from Australia’s Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry recommended that ‘BEAR’ (the Banking Executive Accountability Regime) should be expanded to all Australian Prudential Regulation Authority-regulated financial services institutions. Commissioner Kenneth Hayne called for a phased rollout of the regime, with the next step covering superannuation (pension) providers. The BEAR legislation was introduced in 2018 to make senior financial executives including (Chief Information Officers and Chief Technical officers) personally accountable for IT compliance.

FlexNOW Migrates to AWS Cloud

FlexTrade Systems has made its FlexNOW execution management system available on Amazon Web Services (AWS) in a move to reduce latency for global clients. The Amazon platform will raise FlexNOW’s status as an innovative trading platform by decreasing onboarding time for clients and brokers while allowing their product teams to easily test new ideas, such as STP APIs, mobile access and analytics.

Rhyd Lewis, FlexNOW product manager, says: “With FlexNOW deployed on AWS, our clients benefit from increased flexibility, reduced lead-time for new features, and industry leading security and reliability.”