Matthieu Garnier, Global Head of FinTech and Research – Corporate and Institutional Banking, BNP Paribas shares his insight into how FinTech and RegTech can help banks comply with their risk and regulatory programmes.
Matthieu, can you please tell the Risk Insights readers a little bit about yourself, your experiences and what your current professional focus is?
I lead Fintech and Research for BNP Paribas Corporate & Institutional Banking (CIB), where I have responsibility for assessing and exploring Fintechs, and propose partnerships & Investments to leverage them. I grew up in Equity Derivatives, were I had various roles, from Program Management to Corporate strategy, and where I help engineer and lead some of the largest acquisitions in derivatives’ space in the last decade. I love to embrace challenges and change, firm believer in capacity of Tech to shake the banking industry
What area of FinTech do you find most interesting and why?
All have an interest: some with immediate impact –Robotics, some with a forward looking (AI), some improving the entire infrastructure of the industry (Regtechs & Payments). The interesting ones all share the same feature: They can be fit into a use-case and create value for our clients and for us.
Can you explain some of the challenges for FI’s in keeping up wit hthe investment of challenger banks?
Well, this is no different from every moment in a competitive environment; challengers aim for the leading seats, and incumbent are thriving to improve themselves. The main difference is Technology, which is acting as a catalyst, quickening the turnaround of businesses. Incumbent have to deal with a larger legacy infrastructure, but I trust we are fast learners, and we demonstrated by surviving the most horrendous financial crisis of the last 50 years.
What is your opinion on the choice between FinTech/RegTech or continued manual use?
The main question to be asked is: How can I focus the human time on added-value tasks through usage of technology ? Fintech/Regtech will not replace, but enhance the capabilities of people, and also allow for standardisation and smarter oversight. This shall, however, be looked at within the proper conduct and control framework – as we have to adapt the decision making to the usage of such technologies.
At the FinTech Europe Summit, you will be presenting on your insights regarding – Assessing how FinTech and RegTech can help banks comply with their risk and regulatory programmes. Why do you believe this is a key talking point in the industry right now and what can risk professionals gain from this insight?
– RegTech is a growing sub-segment of Fintech proposing to address compliance and regulatory issues through technology. Its value proposition is particularly appealing to help increase cost-efficiency and reduce operational risk borne by current Financial Institutions plans to address regulatory, risk and compliance puzzle.
– Notwithstanding, such solutions will only reach their full potential once the FI’s are able to produce, maintain and share their data, starting by a clean and shared referential. RegTech’s capacity to provide a sustainable competitive advantage, beyond accelerating the refocus of workforce on revenue generation, is therefore still debatable.
– I like consortium-based initiatives, which will have the virtue, on the long run, to decrease the overall cost for the industry, and being potentially shared with supervisory authorities.
What, in your opinion does the future hold for Innovation professionals, and how can they keep up with the increasing change?
Keeping up requires adaptability, and brain plasticity to connect the dots between technology, businesses, ideas. Listen and stay tuned.