BearingPoint is reforming the regulatory reporting

BearingPoint is the Global Leader in Risktech. Jurgen Lux, CEO Regtech at BearingPoint, discussed couple of his ideas on making Risktech known to the regulators and compliance industry as a whole. Here are the excerpts from his interview with Vedant Sangit, Co-founder of RegtechTimes.

How do you define the term RiskTech?

“We define the term RiskTech and the related terms RegTech and SupTech (Risk / Regulatory/Supervisory Technology) as innovative technology enabling financial institutions, regulators, and central banks to increase the efficiency of regulatory processes and data management and to comply rapidly with ever-changing requirements.”

How big is your team and who are the critical players?

“We have more than 500 people in the BearingPoint RegTech team, which is growing year by year. Critical for our growth are our people. We understand ourselves as a trusted partner of our clients. With team spirit and strong commitment, we work on our shared objective – a strong, stable and sustainable financial world.”

Brief overview about your product/service offering?

“We provide a full-service offering to all players in the industry across the globe – banks, insurers, and regulators. It ranges from on-premise software to Managed Services and regulatory factories, from our strong consulting organization to ongoing training, from comprehensive support services to regular user groups.”

What inspired you to build the Abacus Solution Suit product?

“Financial regulation is vital for a stable, sustainable financial world. With our experience in Risk Data Aggregation and Regulatory Reporting and our product and service offering across the Regulatory Value Chain for Financial Services we make a decisive contribution to that.”

“Our proven Abacus Solution Suite is based on 25 years of experience in regulation. It covers regulatory and risk, valuation, analytics and reporting solutions for both regulators and financial institutions regulated.”

What was most challenging aspect of your journey as the Partner ?

“The most challenging aspect of our journey is to keep pace with the ever-changing regulatory changes. We have been driving this business for 25 years now, and the “regulatory tsunami” is still going on. The last few years have brought the industry a range of new regulatory requirements such as AnaCredit, the revision of the calculation of RWA (risk-weighted assets), BCBS 239 or IFRS 9 along with revisions of obsolete standards. Basel IV, the revisions of the CRD IV/CRR, the amendments to the BRRD and the SRMR are likely to bring about significant changes in supervisory law by the beginning of the next decade.”

How did you overcome initial mindset challenges of the regulators ? 

“Regulators also need software solutions to deal with the increasing amount of data they receive from the reporting firms. Supervisory technology, or SupTech, is a major topic, which we discuss intensively with our contacts from the authorities.”

Where do you see yourself in next three years?

“We expect our growth to continue, and we see ourselves among the leading providers of RegTech, RiskTech, and SupTech. Our USP is our complete service offering. It ranges from on-premise software to Managed Services and regulatory factories, from our strong consulting organization to ongoing training, from comprehensive support services to regular user groups.”

Which countries do you feel you can expand to with your offerings ?

“In the past years, we have been expanding mainly in Europe, and we expect to extend our footprint there. But we are also entering other markets across the globe. Two years ago, for instance, we have opened an office in Singapore to support our expansion in Asia.”

Have you built any consulting model for the consultants from different countries ?

“We have a strong consulting organization, which is growing internationally. Our consulting services cover both product-related consulting and regulatory topics. Our software solutions have always been at the core of our business, and we follow this model also outside of our home markets.”