RegTech – Helping businesses refine processes, deliver transparency and save money

6th February 2020

Digital applications are driving innovation across risk and compliance within the financial sector. Regulatory technology (or ‘RegTech’ as it has become known) is reducing the reliance on resource, refining processes and building solutions that scale. Whether it is risk mgmt., compliance verification, anti-money laundering or ‘know your customer’, there are sophisticated digital solutions that can reduce cost, simplify processes and speed up delivery. 

It is estimated that around 10-15% of jobs in the financial services industry are employed in compliance functions and as this highly regulated industry continues to safeguard itself with new legislation, the need for better (and more transparent) technologies is evident. 

RegTech is projected to become a $120 billion industry, making up around 35% of global regulatory spend by late 2020. Focused on addressing the complex challenges facing financial services organisations, RegTech is ensuring that progressive financial enterprises are run in as streamlined a fashion as possible with digital solutions that prove their worth by delivering serious ROI. 

The Netherlands based Rabobank recently invested in a digital risk management solution that refined processes in their compliance functions. The outcome of which was compliance control completion time was reduced from 15 minutes to 3 minutes. Examples like this show how legacy infrastructure can inflate resource cost and reduce the flexibility of a workforce.

RegTech is not just another industry buzzword, it is driving measurable change in organisations encumbered with time-consuming, manual and sometimes paper-based processes.

Below is a brief list of the benefits that RegTech can bring to your organisation:

  • Bolsters compliance
  • Reduces risk
  • Lowers costs
  • Develops efficiencies
  • Strengthens customer protection
  • Delivers valuable business insights
  • Enriches customer service
  • Creates new product and service opportunities

Aside from the benefits listed above, the use of emerging technologies in the regulations space means that adoption of AI and machine learning are shifting the focus from completion to analysis, from box ticking to unpicking behaviours. 

According to Norton’s 2017 report, cybercrime was responsible for $172bn worth of damage to 978 million consumers across 20 countries. 

Global identity theft, often associated with data breaches and the resulting loss of PII (personally identifiable information) continues to spread, driving the growing demand for identity based RegTech solutions. Utilising machine learning and artificial intelligence these digital solutions can model behaviours, identify uncommon behavioural traits in real time, flag them and carry out a range of initial actions. Delivering the kind of value that saves banks money and customers from fraud risks.

The digital solutions being designed and managed in the RegTech sector are reinventing the complex, defensive approach to regulatory compliance and meeting challenges head-on with innovative, design-based thinking and the latest emerging technologies.

If you’re planning on simplifying your compliance process or tackling risk mgmt. procedures as part of your digital transformation, Waracle excel in highly regulated industries. We have dedicated compliance expertise to support you in meeting your enterprise goals. Whatever your idea, and whatever problem it needs to solve, tell us about it today and start planning for a better, more transparent future.

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