
The Collaborative Future of RegTech: A Conversation with Leo Labeis on FinTech Focus TV
In the latest episode of FinTech Focus TV, Toby Babb sits down with Leo (Laurent-Olivier) Labeis, the Founder and CEO of REGnosys, to discuss the transformation of regulatory technology (RegTech) and its role in shaping the future of capital markets. Drawing from his experience at Goldman Sachs and his entrepreneurial journey with REGnosys, Leo shares insights into the industry’s challenges, innovations, and the power of collaboration in achieving effective compliance solutions. Their conversation provides a fascinating glimpse into how technology and shared strategies can address some of the most complex problems facing the financial sector today. This deep-dive discussion also uncovers how REGnosys’ innovative approaches are redefining industry standards and fostering collaboration among market participants.
From Goldman Sachs to REGnosys: Leo Labeis’ Journey
Leo Labeis begins the conversation by recounting his career trajectory. After spending 13 years in the global markets division at Goldman Sachs as a strategist (or "strat"), he decided to address a problem he faced firsthand: the inefficiencies in regulatory reporting for financial institutions. This realisation led to the founding of REGnosys in 2017, a company focused on creating collaborative solutions for the financial industry's complex reporting requirements.
Leo explains how his work at Goldman Sachs laid the foundation for his approach to RegTech. He describes the frustration of dealing with evolving regulatory demands and the lack of streamlined systems to address them. REGnosys was born from this need to simplify compliance processes while enhancing data quality and efficiency. The journey from identifying the problem to founding a company reflects Leo’s deep understanding of the industry and his commitment to driving meaningful change. His narrative underscores the critical role of firsthand experience in creating impactful solutions.
The Mission of REGnosys: Safer, Cheaper, Faster Compliance
Leo highlights REGnosys’ mission to revolutionise the way financial institutions manage regulatory compliance. The company’s mantra, “safer, cheaper, faster,” underscores its commitment to improving the industry's approach to data reporting. By leveraging collaborative tools and shared resources, REGnosys aims to reduce costs, improve data accuracy, and ensure compliance with ever-evolving regulations.
One of the company’s unique propositions is its focus on industry-wide collaboration. Leo emphasises that financial firms face similar regulatory challenges, and rather than solving them independently, they can benefit from pooling their efforts. This mutualisation of resources allows firms to codify rules collectively, reducing duplication and inefficiencies. The approach not only saves costs but also helps set industry standards that can benefit all stakeholders in the ecosystem. REGnosys’ model demonstrates how shared objectives can lead to transformative outcomes for the entire financial sector.
Tackling the Complexity of Regulatory Data
Regulatory compliance in capital markets involves managing vast amounts of data and converting dense regulatory text into actionable code. Leo explains the intricacies of this process, from sourcing data to implementing bespoke coding solutions. Each firm’s approach often varies, leading to inconsistencies and increased costs.
REGnosys addresses these challenges by developing a unified platform that encourages standardisation and collaboration. By fostering industry best practices, the platform ensures that firms not only meet regulatory requirements but also improve their internal data management systems. This approach, Leo notes, has the potential to create a competitive advantage for firms adopting collaborative solutions. The efficiency gained through such platforms enables firms to focus on their core operations while maintaining high compliance standards. Furthermore, REGnosys’ solutions empower firms to transform regulatory obligations into opportunities for operational excellence.
The Role of Open Source in RegTech Innovation
One of the key themes discussed in the episode is the role of open source technology in driving RegTech innovation. Leo reflects on how the financial industry’s attitude towards open source has evolved over the years. When REGnosys was founded, the concept of open source collaboration was met with skepticism. However, as cost pressures mounted and the benefits of shared resources became evident, firms began to embrace the idea.
REGnosys has been at the forefront of this shift, partnering with industry-standard bodies like the International Swaps and Derivatives Association (ISDA) to develop open-source solutions. By aligning with these organisations, REGnosys ensures its tools are widely adopted and trusted across the financial sector. Open source solutions not only provide transparency but also enable continuous improvement as firms contribute their expertise to refine the tools further. This collaborative framework has revolutionised how firms approach regulatory compliance, making innovation more accessible and impactful.
The Importance of High-Quality Data in Regulatory Compliance
Toby and Leo delve into the critical role of data quality in regulatory compliance. For regulators to effectively oversee markets, they require accurate, high-quality data from financial institutions. However, as Leo points out, achieving this standard is easier said than done. Complex technology infrastructures, coupled with increasing regulatory demands, make it challenging for firms to provide consistent, reliable data.
REGnosys’ platform addresses these challenges by offering tools that enhance data quality and simplify the reporting process. By adopting industry-wide standards, firms can reduce errors and streamline their compliance efforts, ultimately benefiting both the regulators and the institutions themselves. High-quality data not only ensures compliance but also supports better decision-making within firms, adding strategic value beyond regulatory needs. The focus on data excellence positions REGnosys as a critical ally in the quest for regulatory clarity and operational efficiency.
Driving Adoption Through Industry Collaboration
The success of REGnosys’ platform lies in its ability to drive adoption among financial institutions. Leo explains that the company’s initial go-to-market strategy involved collaborating with industry trade associations and standard-setting bodies. By developing solutions under the governance of these organisations, REGnosys gained credibility and established itself as a trusted partner in the financial sector.
As more firms adopt REGnosys’ platform, the benefits of collaboration become increasingly evident. Shared resources and standardisation not only reduce costs but also foster a sense of community within the industry. This collaborative approach has positioned REGnosys as a leader in the RegTech space. The ability to work together on shared challenges transforms compliance from a burdensome necessity into an area of strategic improvement for firms. The ripple effect of such collaboration drives innovation and fosters a culture of shared responsibility across the financial ecosystem.
The Evolution of Diversity and Inclusion at REGnosys
Beyond technology and compliance, Leo shares how REGnosys has embraced diversity and inclusion as core values. Early in the company’s journey, Leo participated in an accelerator program where the importance of diversity in recruitment was emphasised. This experience shaped REGnosys’ approach to building a diverse and inclusive workforce.
Leo recounts how the company implemented changes to its hiring practices, such as partnering with recruiters and revising job postings to attract a broader talent pool. These efforts have paid off, enabling REGnosys to build a team that reflects its values and supports its mission of innovation and collaboration. Leo’s insights underscore how diversity drives creativity and innovation, essential components for tackling complex challenges in RegTech. The focus on inclusion ensures that REGnosys remains adaptive, dynamic, and aligned with its values.
London: A Premier Hub for RegTech Innovation
Toby and Leo discuss the significance of London as a hub for RegTech innovation. Despite challenges such as Brexit, London has maintained its position as a leading financial center, thanks to its robust ecosystem of firms, infrastructure, and talent. Leo praises the city’s resilience and its ability to attract top talent from around the world.
London’s supportive regulatory environment also plays a crucial role in fostering innovation. Leo highlights how UK regulators have taken a forward-thinking approach, encouraging competition and reducing barriers to entry for financial services providers. This environment has made London an ideal base for REGnosys and other RegTech firms looking to drive change in the industry. The city’s dynamic ecosystem provides the perfect blend of financial expertise and technological innovation. Its status as a global financial hub ensures that London remains at the forefront of regulatory advancements.
Looking Ahead: The Future of RegTech and REGnosys
As the conversation draws to a close, Leo shares his vision for the future of REGnosys and the RegTech industry. He notes that regulatory change is a constant in financial markets, with new updates and requirements emerging regularly. REGnosys is committed to staying ahead of these changes by continuously enhancing its platform and expanding its coverage across jurisdictions.
Leo also emphasises the importance of strategic data management in helping firms navigate regulatory challenges. By adopting collaborative solutions, financial institutions can not only meet compliance standards but also gain valuable insights that drive better business decisions. The ability to anticipate and adapt to regulatory changes positions REGnosys and its clients for long-term success. Leo’s optimism about the future reflects REGnosys’ confidence in its ability to innovate and lead in a rapidly evolving landscape.
Conclusion: The Transformative Power of RegTech
This episode of FinTech Focus TV provides a deep dive into the transformative potential of RegTech and the role of collaboration in shaping the industry’s future. Through his work with REGnosys, Leo Labeis demonstrates how innovative solutions can address complex regulatory challenges while fostering efficiency and inclusivity.
For financial institutions navigating the ever-changing regulatory landscape, the insights shared by Leo and Toby offer valuable guidance. As the RegTech industry continues to evolve, the importance of collaboration, data quality, and innovation will only grow, paving the way for a more efficient and compliant future. With companies like REGnosys leading the charge, the financial sector is poised for a revolution in how it approaches compliance and data management. The potential for meaningful change ensures that RegTech will remain a cornerstone of financial innovation for years to come.
This episode of FinTech Focus TV aligns seamlessly with Harrington Starr's mission as a leading FinTech recruitment business. By highlighting the innovative work of Leo Labeis and REGnosys, the podcast underscores the critical importance of collaboration, data quality, and strategic innovation in the financial sector. These themes resonate with Harrington Starr’s focus on connecting top talent with cutting-edge FinTech firms, fostering growth, and driving advancements in areas like regulatory technology, data management, and financial compliance. The conversation also emphasizes London’s role as a global FinTech hub—a key market for Harrington Starr—showcasing the dynamic opportunities available for professionals and businesses in this thriving ecosystem.