According to a recent paper on the 2017 regulatory outlook from Deloitte, firms will face ever increasing regulatory requirements in the year ahead. Only those that adopt innovation will be able to succeed in keeping up with these new demands. Improving conduct of all persons occupying responsible functions is a key target for all supervisors; across all major finance sectors: Banking & Capital Markets, Investment Management and Insurance. Boards will be asked to prove they have access to IT & cyber security expertise to effectively challenge management in this area.
Regtech is exactly what is says: Regulatory technology. Solutions that provide businesses with tools to manage every element of the complexities involved in regulatory reporting – in real time. Firms must become more efficient in managing their regulatory reporting. It’s no longer the case of employing staff and passing their details on to the regulators. Firms must take ownership and PROVE regulatory compliance at all levels.
This all boils down to the fact that – after almost 10 years – firms have yet to put misconduct behind them. With regulatory bodies putting in new measures for firms to improve their culture of accountability, RegTech will bring new solutions to the marketplace.
What is FinTech: exactly what is says: Financial technology. In the 20th century, this was any technology used to carry out basic financial transactions. In the 21st century this evolved to an IT solution conducting not only billions of financial transactions, but also alignments to CRM and ERP systems. Essentially data being connected in numerous ways for reporting purposes. After the financial crisis, firms were looking to use FinTech solutions for recording regulatory information with some links to obtain regulatory information.
RegTech takes this one step further. Simply by having more big data available for analysis, and with more detailed automated workflows, those responsible for ensuring regulatory requirements are met have the ability to record, track and update this business critical information – and in real time.
There are numerous established FinTech solutions in the marketplace today. Additionally, RegTech solutions are popping up as you read this article. The challenges firms face is in ensuring existing older technologies can be seamlessly updated to newer solutions, thereby offering the benefits of real time big data analysis. It is therefore a key importance for all Financial firms to ensure they implement a FinTech/RegTech solution by a provider that understands the complexities of both: functional/regulatory AND IT data transfer/cyber security/big data analytics.
TechFINIUM is a business containing experts from both the Finance and the IT sectors. This brings a variety of opportunities to Banking & Capital Markets, Investment Management and Insurance verticals by ensuring FinTech and RegTech solutions are properly implemented thereby innovating the regulatory framework.