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Tackling global risks

Tackling global risks

Ireland is well suited to setting up a company such as Corlytics, which requires a multidisciplinary team combining legal compliance experts, banking analysts and data scientists, according to its CEO John Byrne.

Founded in 2013 with a team of eight, it now employs 22 people and has offices in London, Boston and New York in addition to its Dublin headquarters at NovaUCD. Corlytics has developed a platform that provides granular data on global regulatory fines that enables financially regulated institutions and their professional advisors to quantify, understand and manage global compliance risks and enforcement exposures.
“From the very beginning we looked at the global market and had team members based in the UK and US from day one, using Ireland as a base in terms of skills,” says Byrne.

“We would define our company as operating in the ‘reg-tech’ space and we are transforming legal and compliance into a science as one of the main thought leaders in the domain.

“The skills needed to achieve this are readily available in Ireland. Over the past 10 years a lot of global expertise has been built up thanks to the IFSC, particularly in capital markets and on the compliance and legal side, which has been of great benefit to us. We are now working with a number of global regulators and see the opportunity to make our
solution into a world standard.”

Having previously run a global fintech company from Dublin, Information Mosaic, for 17 years, Byrne started to see from 2009 that the regulator is now the key stakeholder in all aspects of banking and financial services.

“Every year the consequences from regulatory breaches are becoming more and more serious, particularly for the largest banks. In 2009, the level of fines globally was US$1.5bn; last year the equivalent figure was US$100bn,” he explains.

“And it is not just the size of the fines; some banks have been getting indictments, which means that, technically, regulators can take their licences away. This also opens up the floodgates for other legal action. Another trend is that personal consequences in financial markets have never been so great for senior individuals, with jail sentences having been handed out to senior bankers.For all of these reasons regulation has become the No 1 risk for banks and all financial market participants.”

Building Corlytics up into a global fintech company from Ireland is an awful lot easier having done this before, says Byrne.
“The team are leveraging our network and skills in the industry. We aim to build this into quite a large company and we would see ourselves as having a big opportunity to raise substantial amounts of funding.”

Last June Corlytics secured a €1m syndicated investment involving Kernel Capital and Enterprise Ireland.

The company’s data was referenced in the Bank of England’s Fair and Effective Markets Review, which was released in June this year.