
the rise of regtech
Improving Efficiency and Reducing the Cost of Doing BusinessRegulatory Technology or RegTech has become a hot topic in financial services in recent years, following in the footsteps of FinTech. As its core, RegTech involves using new technology to more effectively meet regulatory requirements, however the joining of technology and regulation to address regulatory challenges has existed for some time with varying degrees of success.
According to Deloitte, the key difference between traditional solutions and the RegTech solutions is agility, speed, integration and analytics. Traditional solutions are robust, inflexible and not easily adaptable, while RegTech offers advanced analytics, innovative assessment techniques and intelligent use of mined data through automated processes.
RegTech solutions are also cloud based, which means that data is remotely maintained, managed and backed up, offering cost-effectiveness, flexibility, scalability and security.
The Next Big Thing
According to a research done by EY, the
adoption of RegTech solutions is set to grow significantly, and will contribute
to increasing volumes of data around regulatory compliance, "enabling more
granular reporting standards, scenario analytics and horizon scanning with the
capability to generate better insights".
Experts expect that in the near future
financial institutions will start increasingly to adopt RegTech solutions, just
as the case was with FinTech. This can possibly to lead to a reduction in
overall compliance costs through automating and simplifying business processes,
writes International Banker, which should lower the need to perform manual
checking, while delivering scalable solutions and allowing speed and efficiency
to be achieved.