Several traditional institutions all over the world have realized that integrating technology with the world of finance was a paramount factor for growth. This mantra has even forced bigwigs such as PriceWaterhouseCoopers to look closely at the way they function, especially in the data industry.
Just recently, PwC revealed that they will be selling LikeZero, the company’s intelligent data capture technology sector. The sale will be conducted via a management buy-out backed by Souter Investments.
LikeZero worked by providing companies with a deeper look into data architectures, allowing them to make better decisions in the field. Its main clients included banks, financial institutions, and other regulated business analysts. Analysts could make use of LikeZero’s technology to enhance their risk management and contract governance. People also reported using technology for transformation and remediation activities.
The decision to move in different directions comes on the back of regulatory restrictions imposed by the Financial Reporting Council. The FRC had put up a ban on all audit firms selling their own technology to client companies so that they can have a larger choice base. Introduced by the FRC in 2016, the new rules restricted the Big Four firms from providing audit clients with financial technology. Following the decision, LikeZero chief executive Michael Lines said:
” This is a hugely exciting moment for our business. In today’s highly complex, unpredictable and regulated world, the ability for financial institutions to understand and manage their counterparty risk has become a critical function. Events such as Brexit, the cessation of Libor and the implementation of new regulations such as the new margin rules for uncleared over-the-counter derivatives, or indeed the impact of a global pandemic, all make the assessment of risk increasingly challenging.”
Officials from Souter Investments also spoke about how financial technology can create a massive impact on the changing financial landscape. Souter pointed out that scalability was of paramount importance, with the onus falling on LikeZero’s system architecture to make it happen. Companies have realized that it is easier to follow regulations rather than receive all the flak and pushback. This agreement would also allow fintech organizations to provide great products without the fear of it being taken down.