Regtech, AI and compliance ANZ BlueNotes

In Australia last week, the banking industry was focussed on a parliamentary inquiry into the industry's culture and response to a range of issues from customer complaints to pricing to market behaviour. Meanwhile, in the United States, technology services giant IBM bought Promontory Financial Group, a specialist risk-management consultancy. Promontory had been mentioned back in Australia, not because of IBM, but because it has been overseeing the remediation program Commonwealth Bank of Australia is running to compensate customers given inappropriate financial advice. Founded by a former US regulator, Promontory is recognised as one of the world's leading firms in regulatory compliance, risk management and risk culture. While Promontory has a significant role in Australia and globally (particularly with the ongoing fallout from the financial crisis and the cultural challenges facing banks) the IBM deal is potentially vastly more significant.