From blockchain to regtech to mobile payments
The financial technology sector is getting more complicated
The following interview with David Dalton, Deloitte Partner, appeared in the Sunday Business Post’s Connected Magazine on Sunday 2 July, 2017
“Regtech is an interesting space. We see a number of interesting companies there. Particularly, they can bring solutions to established financial services firms that reduce the cost of regulatory compliance,” said David Dalton, partner at Deloitte.
“All of the regulation that’s happened over the last decade has added a lot of costs in order to remain compliant. Regtech companies are using smart technology to make regulatory reporting much more cost-effective. It’s really relevant to financial services organisations.
“Payments is obviously another area that’s pretty hot at the moment, particularly with PSD2 coming down the track. Part of the focus of PSD2 is to try and stimulate innovation in financial services, allowing banking systems to be opened up to third parties.
“Robotics, which may not seem in the fintech space, is proving interesting. Robotic automation, in particular, is a technology that has a huge amount of interest amongst larger financial organisations. They are looking at ways to automate inefficient processes.”
With more demands from those in the established financial services sector for IT skills, one big issue is hitting a lot of fintech firms.
“Access to talent, particularly in IT and software engineering, is challenging in Ireland and everywhere. Then there is the regulatory environment, where there’s a need to understand how particular regulations might apply to fintech,” said Dalton.
“What you are finding is that people who have a deep understanding of regulations are going into regtech start-ups, giving them that core expertise.
“Clearly London has a dominant cluster of fintech firms. They are going to have to look at being based potentially somewhere other than London on the back of Brexit. There’s a broader question around financial services around Brexit. For fintechs, their needs are on a much smaller scale so their issues aren’t as acute as larger firms. The real issue is that access to talent, which fintech firms have here as well.
“There’s a lot of talk around increasing course sizes and promoting STEM. That’s ongoing. There’s also a lot of talk around visa programmes, allowing us to bring in people from outside the EU. Whether that’s India or other locations that have larger pools of talent that can be attracted here. Ireland is quite an attractive location for people in the IT space.”
Looking ahead, one technology Dalton expects to become more on the agenda is blockchain.
“The one that’s close to my heart is blockchain. We have an EMEA blockchain lab based here. Over the next 24 months, we see this making a bigger impact on financial services. It has the potential to really change and make the infrastructure of financial services much more efficient.”
Deloitte Fast 50 FinTech Award 2017
Deloitte and Silicon Valley Bank are partnering in a new FinTech category for Deloitte Technology Fast 50 to attract new entrants in this dynamic, vibrant area. Financial Services is key to Ireland’s future growth and these players are influencing this space with their technology and innovation. The award will not only raise profile of winners, it aims to help them scale and evolve by providing support from both Deloitte and Silicon Valley Bank on a global scale. The winner will be brought to Silicon Valley, USA on a trip tailored to suit their growth trajectory where they will meet with key investors, strategic partners and prospects.
Please note: The eligibility criteria for the Silicon Valley Bank FinTech award category differs from the overall Deloitte Technology Fast 50 awards. To apply for the Silicon Valley Bank FinTech category, entrants must be in business for a minimum of three years. For more information on the awards please visit www.fast50.ie