
RegTech in Action: Risk-compliant Investment Advisory in Real Time
RegTech supports banks in meeting regulatory requirements in a systematic, correct and efficient manner. Some of these solutions also generate additional value for a host of other stakeholders – including end-clients.
Deritrade, a virtual marketplace for structured products created by Bank Vontobel AG, is one innovative solution that includes a significant RegTech component. Insight spoke to Thomas Stadler, Head Distribution Platform Solutions at Bank Vontobel AG, and RegTech expert David Bundi from PwC Legal Switzerland about the benefits for both clients and their advisors.
insight: Mr Stadler, which modern technological achievement has, in your opinion, had the greatest influence on client advisory services in the investment business?
Where do you see the greatest advantages in the use of new technologies in investment advisory?
New technologies reduce production costs for investment products and thus ultimately lead to an improved client offering. Wealth managers who incorporate digital tools into the advisory process can secure a major competitive advantage on the back of technological advances. On the one hand, digital platforms help providers to scale up their offering while, at the same time, shortening the time taken to issue new products. On the other hand, issuing platforms enable wealth managers and investment advisors to close gaps in their product offerings. And this is precisely where RegTech solutions and issuing platforms such as deritrade come in.
What is deritrade and can you describe the platform’s strengths?
Vontobel’s deritrade platform is like a virtual marketplace where client advisors or external asset managers can issue structured products for clients – in real time and tailored to each client’s wishes. The structured products business is strictly regulated. There are a large number of requirements that need to be observed. Based on a fully automated process, the platform takes account of all relevant regulatory requirements so that clients and the financial institution have the certainty that everything is perfectly legal in the truest sense of the word.
Mr Bundi, how would you categorize this solution in the RegTech context?
The interview series ‘RegTech in Action’ provides an opportunity for banks to present successful RegTech solutions in operation within their organizations. Each discussion with ‘insight’ involves a bank representative and RegTech expert David Bundi, who places the different RegTech solutions in an overall context.