The U.S. government places extensive regulations on investment banking and related activities, including the use of technology. And while this means operating in the space is far from a simple proposition, Finalis CEO Federico Baradello explores the need to build an infrastructure of trust.
“Investment banking services are more difficult to unbundle given significant regulatory restrictions for the industry.”
— CB Insights report, “Unbundling Bank of America: How the Traditional Bank is Being Disrupted”
The above quote calls out a specific pain point in today’s investment banking industry: We have technology that would be greatly helpful in making investment banking more efficient, but the regulatory environment makes that incredibly challenging.
A clear-eyed response to this problem is to recognize and understand those regulatory restrictions, so as to tackle that problem head-on. Getting a handle on this allows regtech startups to transform and democratize investment banking by effectively scaling the trust layer for participants in the long tail of the capital markets space.
What do we mean by scaling the trust layer? And who are these participants?
The trust layer has to do with the ability to provide a…
