BWise, an enterprise governance, risk management and compliance (GRC) platform recently acquired by Nasdaq, believe that in order to gain trust from users and build new revenue streams, financial services firms should take control of their risk management.
Quoted in a Banking Technology report, Luc Brandts, chief technology officer at BWise said that trust, alongside transparency of data, is important when risk is involved. “There is an equation at work in financial services: you need trust from the customer, but to make that happen you have to provide transparency – and to achieve that, you need to have a solid grip on your risk management and your data. Data is not used enough, and it should be used a lot more.”
The acquisition of this BWise was a benefit to Nasdaq because in recent years, traditional revenue sources from trading activity have reduced for all trading venues due to smaller volumes, diminished trading sizes and greater competition. Therefore, many exchange businesses are seeking to broaden out their compliance, data management and technology.
Brandts explained how BWise manage different types of risk and are different to other companies in the financial services sector. “We look at anti-bribery checks and all sorts of systems that help to manage governance, compliance and risk. There’s a lot of companies out there in the financial services community who still use a lot of manual processing, and we can help them in a number of ways,” Brandts continued.
Being acquired by a global company such as Nasdaq, enables BWise to grow in other countries. Brandts believes that there is potential for capitalisation in the Asia Pacific region with the use of more efficient technology. “They don’t have such a burden of legacy technology in some of these markets. In five years’ time, we expect to see the use of data running deeper into these organisations, with deeper shared risk ownership, more use of devices and less division – both between business units and between technology interfaces, such as laptops and mobile devices,” Brandts said.
On the subject of different countries, Brandts told Banking Technology that all markets have different requirements and therefore, have varying risk factors.