Navigating Financial Regulations for Future Banking | Mick Fennell

Financial regulations play a crucial role in shaping the landscape of the banking and fintech industries. In this video, Mick Fennell, CRO at Temenos, discusses the ever-changing regulatory environment and how it impacts financial institutions globally. With the rise of new technologies and the evolving financial ecosystem, keeping up with financial regulations is more important than ever. Temenos helps banks and financial institutions navigate this complex environment by offering scalable solutions that enable compliance with the latest regulatory requirements, all while fostering innovation and improving customer experiences.

As Mick explains, the regulatory landscape is constantly evolving, with new mandates coming from governments and regulatory bodies around the world. For instance, in Europe, changes such as the introduction of verification of payee services and updates to the Target 2 system are set to impact the way financial institutions operate. Similarly, the end of the transition period for SWIFT’s MT2MX migration and the growing emphasis on instant payments present challenges and opportunities for financial institutions. As regulations tighten, especially in areas like cybersecurity and fraud prevention, financial institutions must stay agile and adapt to new requirements quickly. This is where platforms like Temenos come in, offering a secure and compliant infrastructure that helps banks keep pace with these changes.

One of the biggest challenges facing financial institutions today is balancing innovation with compliance. While banks are eager to launch new products and expand their services, they must also ensure they meet all regulatory requirements to protect both customers and their businesses. This includes managing various risks, such as credit, operational, and counterparty risks, as well as the growing threat of cybercrime. Temenos helps its partners by offering a platform that is constantly updated with the latest regulatory changes, allowing banks to avoid costly and disruptive migrations. By leveraging cloud-based solutions, Temenos ensures that their clients can stay compliant without the need for constant manual updates or migrations.

Looking to the future, Mick emphasizes the importance of embracing new technologies like AI, stablecoins, and CBDCs (central bank digital currencies). These innovations hold the potential to transform the financial sector, but they also require careful regulatory oversight. As Mick points out, embracing financial regulations and working closely with regulators will be essential to ensure that new technologies are implemented safely and securely. For example, stablecoins and CBDCs offer the promise of faster, more efficient payments, but integrating these digital assets into banking platforms will require careful consideration of compliance and regulatory frameworks. Similarly, AI will continue to play a key role in financial services, but its use must be governed by transparent and responsible regulations to protect customers and maintain trust in the financial system.

Temenos is uniquely positioned to help banks navigate these complex challenges, as they have been a leader in core banking systems for over 17 years. Their ongoing investment in their platform ensures that they can continue to provide the tools and support needed for banks to stay compliant with financial regulations while also driving innovation. As Mick concludes, the future of banking is not just about technology—it’s about building the right partnerships and working together to create a secure, compliant, and innovative financial ecosystem.