In the last RegTech 20:20 podcast episode of the year, the CEO and co-founder of Encompass Corporation, Wayne Johnson, Global Head of Client Lifecycle Management and KYC at PEGA, Alex Dixon, and financial services industry expert Jo Scanlan discuss how RegTech, digital transformation and Client Lifecycle Management (CLM) have developed in the last year, whilst also looking towards 2021.

In review of 2020, Wayne commented: “[COVID-19] has helped [RegTech] mature a lot over the last 12 months…”

“[Over 2020] our customers have been under more pressure – margins are tightening, and  the need for businesses to transform their offering into a much tighter digital service is much greater now than it ever was, prompting demand for RegTech and automation software.

“Furthermore, as the regulatory environment hasn’t suffered any relaxation by the regulators, we’re still seeing that the pressures on those in the compliance groups in organisations to ensure that they are doing the job has increased, prompting the question: how do we tighten margins and deliver a better outcome…? So that has played a big part in the growth of RegTech as a sector, and the particular focus it’s taken in the mind of those companies that are trying to improve their focus, cut their costs and deliver a better outcome.”

When considering the importance of digital transformation initiatives for financial institutions, Alex said: 

“Digital transformation to global banks has become essential. 18 months ago I would have said it was something that was important to banks, but they’re going to proceed at a slow and measured pace, in order to get there. But, with the onset of Covid and having to work remotely, everyone has had to accelerate their digital plans, and they not only have to accelerate.

“With remote working, banks have to have this digital transformation as they still have the regulatory obligation to go back to the regulators and show that they’re still in control of their client and their lending money to clients that have had all the compliance tests.”

And, discussing the growing importance of CLM, particularly to financial institutions, Jo said:

“[Throughout 2020] CLM’s have helped to coordinate end to end onboarding and the KYC workflow, the ability to have sophisticated rules engines that cover the regulatory requirements around multiple regulations. Also, having that API connectivity to be able to connect that information into other platforms and allow automation [will continue to be key].”

Some other trends and predictions in the episode include:

• Increased dependency on automation
• The need for higher levels of data entry, to displace physical paperwork, and subsequently the role of for  RegTech in ensuring this process is managed legitimately and safely
• The emergence in acquisition activity occurring in the financial and RegTech sectors, as we see the natural amalgamation of some of the smaller players into larger enterprises – a natural process which, on the whole, has been placed on pause since the start of the pandemic, and is expected to resume towards the end of 2021

If you would like to listen to the full episode, please go to: https://www.encompasscorporation.com/regtech2020-podcast/. You can also find the podcast on all major platforms, such as Apple, Spotify and Google Podcasts.

In a world first, Valour, the Swiss-based creator of investment products that provide exposure to innovative technologies, has announced the launch of Bitcoin Zero, a Bitcoin (BTC) exchange traded product (ETP) that comes with zero management fees. 

From today, Bitcoin Zero will begin trading on the Stockholm-based Nordic MTF, part of the Nordic Growth Market (NGM) stock exchange. It will make investment in the world’s best-known digital asset easier, more secure and more cost-effective than all other options.

Valour Founder and Director, Johan Wattenström, said: “Our mission is to make investment in disruptive technologies accessible to all. The launch of the Bitcoin Zero ETP is very much a part of this. It marks a significant step towards the mainstream adoption of digital assets, enabling investors to diversify their portfolios and gain exposure to Bitcoin, whose value has almost tripled this year.”  

Trading Bitcoin Zero is as simple and secure as buying shares. It can be done through any broker or financial institution with access to the Nordic Growth Market Stock Exchange. Tommy Fransson, Deputy CEO of the exchange, said: “Nordic Growth Market has been a dedicated partner for developing and supporting the ETP market for more than 15 years. We are delighted to welcome Valour and their new, innovative ETPs to NGM. Digital assets are an important part of the future of financial markets, and this is a significant step in making these products available to all investors.”

Tinkoff Mobile has launched a new 2.0 version of its trailblazing voice assistant Oleg, which enables customers to create their own mobile concierge with custom features.

With the new version of the voice assistant, users can choose the assistant’s name, voice and gender, set up instructions to handle different calls from people on their contact list, as well as calls from unknown numbers, create their own greetings, and so on.

New voice and name

Each user can create their unique Oleg, as the new functionality allows for choosing the assistant’s name and voice. The familiar name Oleg can be changed to Olya or any other name or alias with a male or female voice.

Introduction

Users can choose how Oleg will introduce them when answering calls by setting up their name, personal description, alias, job title etc. They can also instruct the assistant on how to handle calls from different contacts. For example, Oleg can tell a caller that he will pass on a message to the Tinkoff Mobile customer if someone from outside this customer’s contact list is calling. But when answering a call from a known number, he can also refer to the customer by nickname, such as Kostya, Crutch or Super Boss, or any other nickname the customer prefers to be addressed by for a specific person from the contact list.

Phrases and greetings

Users can customise greetings and conversational phrases for the mobile concierge when communicating with people (up to 400 characters). Users can either welcome their callers with default greetings or set up their own conversation scripts to be used by the voice assistant.

Different greetings can be set up separately for numbers on the contact list and for unknown numbers.

Oleg will be able to greet those on the contact list by name. The assistant also knows how to identify specific contacts, even if their name is not recorded in the contact list fields as a first and a last name.

For instance, when Sveta Eyebrows calls, Oleg will say: “Hi, Sveta, Sasha cannot answer. I am Oleg, the assistant. Do you want to leave a message?”

In case of a contact with no specific name such as, for example, Flower Delivery, Oleg will use a default greeting without calling the contact by name.

Oleg response scripts

Oleg 2.0 can also be instructed to answer calls in several situations:

• automatically answer all incoming calls for the customer;
• answer when the phone is out of service;
• answer when the customer rejects a call;
• answer when the customer fails to pick up the phone after 10 or more seconds.

Your Tinkoff Mobile app will keep audio recordings and transcripts for each call.

The personal mobile concierge will soon be able to block unsolicited calls or automatically answer them for the customer. Oleg is also integrated with Who’s Calling, Tinkoff Mobile’s caller ID service. The assistant can send a text message to customers to inform them of any calls from unknown phone numbers and warn them if they received a call from spammers or fraudsters.

The updated version of the Oleg voice assistant is already available to Tinkoff Mobile customers in the new versions of its app for iOS and Android. Users will have seven days to try out Oleg’s new features for free, after which they will be charged a monthly fee of RUB 59. 

HSBC has announced the appointment of Steven Van Wyk as Group Chief Information Officer (CIO), to lead the bank’s global technology organisation and to execute its customer-focused technology strategy.

Steve will be responsible for ensuring HSBC’s global businesses have strong technology capabilities so that they can deliver market-leading customer experiences. This includes applying design thinking and implementing technologies like artificial intelligence and robotics to digitise key processes. He will also be in charge of operational resilience and managing the bank's cyber security.

Steve joins HSBC from The PNC Financial Services Group (PNC Bank), where he was Head of Technology and Innovation. Prior to PNC, Steve was Group CIO and Chief Operating Officer (COO) at ING Bank, and he previously spent 10 years with Morgan Stanley, including as Global CIO/COO for the Individual Investor Group.

Based in London, Steve will lead HSBC’s global team of technologists, including embedding new agile ways of working with a strong customer outcome focus, as well as talent development and attraction.

John Hinshaw, Group Chief Operating Officer, HSBC, said: “Steve is a highly-experienced transformational technology leader, with a strong track record of running large scale technology organisations in financial services. I look forward to working with Steve to execute on our customer-focused technology strategy, which is the foundation and enabler of the bank’s growth plan.”

Steve Van Wyk, said: “I am delighted to join HSBC with its unique global reach, diverse customer base and strong growth opportunities. There is huge potential to use technology to continue to improve and differentiate its customer experience, as well as to increase speed and efficiency.”

Nearly a quarter of business owners (23%) will not buy any Christmas gifts for their family and friends this year as the pandemic takes its toll on plans across the UK. 

Christmas and working hours

The research [1], undertaken by one of Europe’s largest small business lenders, iwoca, also found that of the business owners who are parents, over a third (35%) will not buy presents “at the same level as pre-pandemic” for their children this year. As for working hours, whilst many across the UK will have some time off over Christmas, small business owners are having to work overtime, with research revealing that 1 in 6 will work on Christmas Day this year (16%), and 1 in 3 on Boxing Day (31%). Even for business owners who are parents, 1 in 10 will work all five days over the holiday period – Christmas Eve, Christmas Day, Boxing Day, New Year’s Eve and New Year’s Day.

Nearly half of female business owners concerned they will close business in 2021 

Research suggests that female business owners may be disproportionately impacted by the pandemic, as nearly half (47%) worry they’ll have to close their businesses in 2021, compared to just over a third (35%) of men. 

The holiday period could also be tougher for female-led businesses. iwoca’s research shows that they plan on working more hours and spending less time with their families this year to compensate for the adverse effects of Covid-19 on their businesses. Just under a third (32%) of women are planning to work extra hours compared to a quarter of male business owners. Christmas is usually a time when families can come together, however 41% of female business owners report they’ll spend less time with their families this Christmas to focus on their businesses, with a similar percentage (39%) of male business owners feeling the same. 

Daiga Ozolniece, owner of Birmingham based beauty salon – Adelaine Beauty Ltd: “We don't know how we’re going to survive. It’s very possible we’ll have to close down in January. It all depends on the Christmas period. My family will spend this Christmas without me. I’ll be sitting in my salon until the last minute, waiting for clients. I’ll work on Christmas Day, Boxing Day – every day. Every penny counts. There are no presents this year - none at all. We’re barely coping with the bills.

“It's a hard time for everybody now, but it’s especially tough for beauticians. People aren’t going out anymore so they don’t go and get their lashes or nails done. Walk-in clients are not allowed under the government rules, but the beauty industry relies on them. Supermarkets are busy because people can just walk in – my salon is empty because you need to book. The rules are not equal. Beauticians are having to go and work in factories because they can't survive - it’s that bad.” 

Seema Desai, Chief Operating Officer of iwoca, added: “Christmas itself will of course be different for all of us, but it’s even more concerning that so many business owners are worried that they may not have a business to go back to in 2021. Christmas won't be an easy time for many business owners this year as they juggle to keep their businesses afloat whilst some will try to spend quality time with their families or loved ones.”  

iwoca has now distributed over £160 million through the Government's Coronavirus Business Interruption Loan Scheme (CBILS) and in June launched iwocaPay an online buy now pay later invoice checkout to help small businesses get paid on time.

[1] 619 small business owners were surveyed between 30/11/20 - 03/12/20