EY has announced plans to invest $1bn over the next two financial years into new FinTech solutions.
The funding, which will be made in addition to its existing ‘significant’ annual contributions to the space, will begin from July 2019. Investments will focus on new technology-based solutions within financial services, cyber, risk management, managed services, software services as well as digital tax and audit services.
This increased funding into FinTech is part of EY’s strategy to provide clients with the latest technology solutions.
As part of the new funding commitment, EY has named Nicola Morini Bianzino as its new chief client technology officer and Steve George as its chief information officer. EY chief information and security officer Barbara O’Neill will also sit on the leadership team of this new initiative.
EY Global chairman and CEO Mark Weinberger said, “In this transformative age, businesses and governments are under significant pressure to not only keep pace, but get ahead of the vast disruption and technological change. We see enormous opportunities in helping clients address these challenges and stay ahead of the technology curve.
“With this investment and expanded technology leadership team, EY will help businesses navigate industry disruption to realize their growth potential.”
Over the past year, EY has launched a number of financial offerings including the use of blockchain in marine insurance, automating royalty payments and the use of drones for inventory observations. It has also developed a number of its existing financial solutions, such as its audit and tax tools.
RegTech
According to recent data by RegTech Analyst, the global RegTech sector is showing no signs of cooling, with more than $2.5bn already raised this year. More than $6.1bn has been raised by RegTech companies across 529 deals since 2014.
The RegTech sector expanded steadily between 2014 and 2017, with funding increasing at a CAGR of 12.4% and annual deal activity staying above 100 transactions during the period.
However, 2018 has been a standout year for RegTech investment, with funding reaching record levels. More than $2.5bn has been raised in the first six months of the year already, which is equal to 87.2% of the total capital raised by RegTech companies in 2015, 2016 and 2017 combined.
Copyright © 2018 RegTech Analyst
Copyright © 2018 RegTech Analyst
