The Compliance Cloud: how Asia private banks can improve efficiency

December 6, 2016

Article by Ishika Mookerjee

CityWire

Using CloudAPIs can help private banks streamline compliance processes and make them more cost-effective.

That's the view of Stephane Dubois, founder and CEO of Xignite, which delivers cloud-based real-time, reference and historical market data via APIs to digital assets, such as websites and apps.

'Many private banks must ensure pre-trade compliance for assets that are in their client’s portfolios. Often they don’t control which assets their clients bring in,' he told Citywire Asia.

'Without the cloud, this means they must have reference data available on hand for millions of instruments—which is complex and expensive.

'With CloudAPIs making large amounts of data available on demand, then can request the data they need from third-party providers, when they need it,' he said.

This is what Dubois' clients, which are software companies like Cordium and Basis Code specialising in compliance, are telling him.

He believes all this data will ultimately be on the cloud.

Xignite has a suite of products mostly focused on the front-office and providing market and reference data. 

'But compliance is an exception because it is so well suited to an on-demand model. We are expanding our coverage to different asset classes, referencing data and pricing data,' Dubois said.

The Monetary Authority of Singapore has recognised the potential of the cloud, and issued new guidelines for using such services in July, which it deems outsourcing.

'While outsourcing arrangements can bring cost and other benefits, it may increase the risk profile of an institution,' said MAS.

Asia plans

Globally, Xignite is currently working with Betterment, FutureAdvisor, Personal Capital, Robinhood, SoFi, StockTwits, and Wealthfront. 

However, Asia is Xignite's fastest growing market – it contributes around 18% to its revenues - and the firm wants to expand its operations in the region. 

'We want to come to Asia. We are looking to tap Singapore as well as Hong Kong for mainland China,' said Dubois.

Source: CityWire

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