Fintech | Wolters Kluwer
Solving Compliance Challenges for Fintech and Evolving Bank Technology

Whether it is blockchain, AI, machine learning, payments, onboarding, cryptocurrency or other reg tech issues affecting banks, brokers, insurers or other financial firms, we have the knowledge, experience, skills and products to assist you.

Fintech: Consulting Services for the Innovation Age

In today’s environment you must meet your customer’s changing needs. Advancing financial technology or fintech can help you get there. Neobanks, nonbank financials and pioneering financial institutions partnering with or deploying innovative technologies, are subject to various compliance regulations and the costs of noncompliance can be high. Our consultants understand disruptive technologies and advise banks, credit unions, marketplace lenders and others on compliance measures needed to keep pace with emerging trends and changing requirements. Rely on us to do a complete evaluation of compliance programs, identify gaps, and recommend enhancements needed to achieve and demonstrate compliance.


 
 
 
 

Compliance Management System (CMS) Reviews

An independent evaluation of an institution’s framework for complying with consumer protection laws and regulations and adhering to internal policies and procedures. Engage our consultants to review compliance policies, processes, controls, monitoring, reporting, training and systems to develop a gap analysis and actionable recommendations to improve the operational efficiency and overall CMS against the requirements of federal regulators.
 

Unfair and Deceptive Acts and Abusive Practices (UDAAP) Reviews

A risk-based evaluation of the CMS for alignment with consumer protection principles, including UDAAP, to determine whether it sufficiently monitors, identifies and addresses potential acts or practices that materially increase the risk of consumers being treated in an unfair, deceptive, or abusive manner.
 

Fair Lending Reviews

A statistical review of a specific dataset to determine potential discrimination on a prohibited basis done by comparing lending patterns to demographics and peers. The Review can also include focal point reviews, conduct regression analysis to identify outliers, and isolate data to assist with comparative file reviews.
 

Due Diligence for New Partners

A CMS review of strategic partners, including: Fintech partner review, due diligence, CMS review, compliance program diagnostic/gap analysis, vendor management program review, third party risk assessment, compliance program development.
 

Risk Assessments

An evaluation to identify hazards related to non-compliance with consumer protection regulations due to inadequacy of controls or program gaps.
 

Policies & Procedures-- Training

Staff and Board training on new regulations and policies and procedures as part of maintaining a strong CMS.
 

Insights

 

Frequently asked questions

 
 
"Fintech" is shorthand for "financial technology" and the term is used to describe a variety of innovative technologies such as AI, blockchain, machine learning, regtech, payments technology, etc. These technologies can be used by very different businesses in a wide range of business segments. For example, various forms of regtech may have specific uses in both the financial and health business segments.
 
 
How it works is the "secret sauce" of fintech and requires understanding the technological underpinnings of specific technologies and applications.
 
 
  • Payment systems—both quick money transfer apps and mobile device apps
  • Blockchain applications relating to trading & settlement, smart contracts, and identity management
  • AI applications for fraud prevention, risk management, customer services, network security, marketing & investment decisions (roboadvisors)
  • Cryptocurrencies such as Bitcoin, Ethereum and many more, as well as Initial Coin Offerings (ICOs) & tokens
  • Regtech applications relating to risk management and fraud prevention (transaction monitoring, AML screening, trade data tracking)
  • Mobile banking derived apps such as biometric based account access and payment/transfer approvals
  • Open platform banking permitting customers to link and understand information beyond a single bank or financial partner
 
 
Regtech is a label which blends the terms “regulatory” with “technology” to capture innovative technology designed to solve regulatory related challenges. The term regtech was defined by the UK financial firm conduct regulator the Financial Conduct Authority in 2015 as “a sub-set of FinTech that focuses on technologies that may facilitate the delivery of regulatory requirements more efficiently and effectively than existing capabilities."
 
 
A virtual currency or cryptocurrency is only in digital, not physical, form and uses a cryptographic hash for security. Bitcoin and cryptocurrencies generally are types of decentralized digital currencies that are not managed by a central bank or administrator.
Learn more about Cryptocurrency
 
 
A blockchain is an organized chain of electronic blocks of data that are shared simultaneously and publicly, known as a distributed ledger. The distributed ledger relies on consensus among participants to verify agreement about the quality and state of the data in each block among users. A public record of all the linked blocks is maintained and updated. A cryptographic hash is used to verify the authenticity of each new block added to the chain.
 
 
Cryptocurrency is a store of value that is recorded and managed in electronic data. Blockchain is the distribution system for a cryptocurrency. In other words, a cryptocurrency is the content that is stored and identified via blockchain technology. Blockchain was the original distribution mechanism for bitcoin beginning in 2009 although today blockchain is used for many types of data besides cryptocurrency.
 
 

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