Navigating Regulatory Frontiers: Insights from JWG’s 8th Annual RegTech Conference

On 7th February Michael Robertson, UK Head of Consulting and Niamh Kingsley, Head of Product Innovation & AI attended JWG’s 8th Annual RegTech Conference. 


Niamh is a technology leader with experience managing complex transformation projects with an academic background in computational neuroscience and neuroeconomics.

Niamh Kingsley
Head of Product Innovation & Artificial Intelligence

Set against a backdrop of more than 40 regulatory drivers, RegTech 2024 brought together a diverse assembly of industry leaders, regulators, regtech vendors and tech enthusiasts. The key questions of the day were:

  • How do we navigate the strategic regulatory priorities that are shaping, and will shape, the future of technology in financial services?
  • How do we ensure we invest in those priorities at the right pace?  
  • Ultimately, is regulation evolving swiftly enough to match the pace of our digital ambitions?

From traditional finance (TradFi) and decentralised finance (DeFi), to the expansive realms of artificial intelligence (AI) and broader distributed ledger technology (DLT) solutions, financial institutions are facing an unprecedented wave of change.  

The pressure to adapt and comply is intensifying. In the final panel of the day, RegTech 2024 Priorities Wrap-Up, Niamh proposed a new perspective. She urged the industry to view the future landscape through the lens of a ‘post-digital’ era. Importantly, she underscored the urgency of investing time and resources now to prepare for the paradigm-shifting risks that are projected to redefine the financial landscape in the next 5-10 years.  

Navigating priorities

Historically, regulatory efforts have been fragmented—by topic, jurisdiction, technology. Financial institutions grapple with a persistent triad of challenges: the compliance burden, geopolitical pressures, and a necessity to innovate.

Despite the existence of numerous proof-of-concept programs (particularly in the DLT space), collaboration has remained elusive. However, the landscape has transformed significantly over the past 18 months. A global regulatory agenda is taking shape, emphasizing cross-industry collaboration and standardized approaches. Concurrently, technology is pivoting towards demonstrating value and interoperability, effectively bridging the gap between regulation and innovation.

The year, financial institutions are tasked with striking a balance between compliance with a packed regulatory agenda—you can read our digital regulatory timeline for 2024 and beyond—whilst not losing sight of horizon and emerging regtech items.  

Key areas of focus include conduct risk (consumer duty, ESG, AML/CFT/sanctions, HKMA, IOSCO), risk and data (Basel III/IV), technology (EU AI Act, EU Cyber resilience act, TPRM, UK ICO Generative AI data protection), trading (Algo testing, digital asset, sandboxes, T+1, settlement optimisation etc). The use of logical data models and common domain modelling (CDM) is gaining traction in managing these risks, with oversight from regulatory bodies like ESMA. Additionally, the use of regulatory sandboxes allows for innovation within a controlled risk environment.

The post-digital perspective: innovative technologies and foundational resilience

In the last panel of the day, we delved into the concept of a ‘post-digital’ perspective. In this new era, the concept of resilience is challenged significantly: it isn’t just about being reactive, but being proactive in the systems we design and implement. As innovation continues at an unprecedented pace, it brings with it not only new technology opportunities but also greater security threats. For instance, AI, machine learning, quantum computing all bring about new possibilities in cybersecurity and cyberthreat.  

In the UK, we’re witnessing real collaboration between the government, regulators, research institutes, and industry participants. The collaboration is not just theoretical; it’s leading to tangible outcomes. For example, the UK government has invested £2.2bn in the AI sector, with plans to invest further and grow the UK AI market to over $1 trillion (USD) by 2035.

Non-compliance with regulations such as the EU GDPR can result in hefty fines, up to 4% of global company turnover. This underscores the importance of regulatory compliance in maintaining trust and credibility in the digital age.

Looking to the future, what should firms prioritise?

As we look to the future, the focus is indeed on balancing the need for innovation with the necessity of compliance. But it’s also about recognising the transformative potential of emerging technologies, both for good and for bad.  

In this rapidly evolving landscape, collaboration, standardisation, and resilience are indeed key. But so too is the ability to anticipate and adapt to change. The post-digital perspective urges us to prepare for the paradigm-shifting risks of the next 5-10 years. This will require investment, education, mutualisation.  

By working together, we can shape a future where technology and regulation work hand in hand to create a secure, innovative, and inclusive financial ecosystem. The challenge lies in navigating the complex regulatory landscape while also harnessing the potential of emerging technologies. The post-digital perspective urges us to anticipate and prepare for the paradigm-shifting risks of the next 5-10 years.

In this rapidly evolving landscape, the key to success lies in collaboration, standardization, and resilience. By working together, we can shape a future where technology and regulation work hand in hand to create a secure, innovative, and inclusive financial ecosystem. It isn’t just about technology, it’s also about people—the innovators, policymakers, the consumers, who will ultimately determine the shape of the new post-digital world.  

How Delta Capita can help

Delta Capita’s experienced global Consulting and Technology teams have wide-ranging experience across regulatory reporting, technology solutions and services, and innovative technologies such as AI and DLT.  

We have a deep understanding of industry best practice, and collaborate with standards bodies, industry participants, market infrastructure providers, trade associations, and technology partners. Where these institutions drive standards, and workflow and tooling commonality, we assist in the mutualisation of those benefits through advisory, interpretation, education, technology adoption, change, and implementation.  

To find out more and speak to one of our experts, contact us today.