EXCLUSIVE – Technology services provider Synechron launched a regtech program focused on helping its financial services clients on regulatory compliance issues.

The program, which Synechron refers to as its Regtech Accelerator Program, went live yesterday. Although it is called an accelerator, the model of the program is based on Synechron’s blockchain project (also called an accelerator program), launched back in September, Joris Hillebrand, managing director at Synechron Business Consulting told Bank Innovation.

“We have divided the accelerator into six in-house categories to develop proprietary proof-of-concepts,” Hillebrand said. “We would work with a client on the category they are interested in to build a product tailored to their needs.”

Those six categories for the regtech program are Anti-Money Laundering (AML), Know Your Customer (KYC), Basel III, International Financial Reporting Standards (IFRS) 9, the Generally Accepted Accounting Principles (GAAP) and the Fundamental Review of the Trading Book (FRTB).

“The categories were picked specifically to address specific regulatory challenges that most common,” he said. The program allows Synechron to enable its customers to improve efficiency relating to regulatory compliance, but will also help reduce costs, which are on the rise due to new technologies (like blockchain, robo-advisers, etc.).

According to a recent report by Duff & Phelps, the compliance costs for financial institutions could more than double over the next five years. The survey, of 183 senior staff at asset managers, brokers, and banks, showed that regulatory costs could rise to 10% of their total revenues by 2022. As of now, banks and FIs typically spend 4% of their total revenue for compliance.

Based in New York, Synechron has 18 offices globally, with over 8,000 employees and about $500 million in annual revenues.