With ever increasing complex PRA regulatory requirements being placed on investment institutions, insurance companies and banking businesses, it is no surprise that they are turning to technology to get a grip on the demands being placed on them.
RegTech is the buzzword of 2017 and is naturally growing in popularity as it seems to have all the answers. That being said, the barriers to implementing a RegTech solution are also on the rise.
This month I’d like to review the top 5 barriers and offer solutions to each:
- Lack of understanding:
RegTech is a combination of many things. First it is a new system which must be integrated into the business’s existing infrastructure.
On the one hand you set up all your company information and compliance requirements. On the other you set up all your personal & individual senior
Then you match the two together. Where there are gaps, (ie a senior manager does not hold a required training certificate specific to their position), you organise this & record when it has been done.
All this forms big data which can give you summary displays
in easy to understand dashboards and reports.
Good RegTech solutions will have added options for you; such as managing your data migration, automatic alerts for signoffs, workflows and report sharing, amongst others.
- Cost / Benefit analysis and budget planning -
weighing up the functional and cost benefits of having information spread across multiple offices with reports being generated by multiple administrators in a wide variety of document files/versions VERSUS implementing a new
technology solution into your existing IT infrastructure needs to be carefully considered.
Also a key point to review is the cost of NOT implementing RegTech and running the risk of fines due to (potential) and unintentional human error. The majority of global businesses always have
pre-planned future IT requirement budget or at least a bucket allowing for unexpected IT solution requirements – such as RegTech.
- Unclear guidelines from the regulators.
After the last financial crisis the Regulatory Authorities have been very hard at work. What seemed to be a rapid development of ad hoc compliance requirements and associated fines have now been clearly defined, such as the PRA
This barrier has been overcome, unless the compliance professionals within the organisation are not aware, which would be unheard of and quite shocking.
- Overwhelming regulatory and compliance requirements.
This is completely understandable. There are an enormous amount of requirements, all clearly documented in great detail. On the one hand, from the compliance professional point of view, this can be hugely time
consuming; in terms of reading, understanding and tracking. On the other, from a systems professional point of view, this is valuable as it helps in setting up the RegTech solution.
Clearly defined terminology and rules, in logical order mean a slightly longer set up, but once
done the automated workflow can reduce processing and monitoring time for the compliance teams.
- Collaboration between functional and technical teams.
This issue is as old as computers and computer applications. The technical teams are concerned about the seamless integration into the business’s infrastructure (including all the technical elements therein).
functional teams are concerned about having valid data and managing it.
Getting buy-in from all stakeholders is absolutely crucial from the outset. Key is to obtain solid ‘guaranteed deliverables’ from both the IT teams, in ensuring the system is up and running continuously, as well as
the Compliance teams, in ensuring all relevant data is entered correctly.
Essentially we are talking about Harnessing Technology Boundaries – that’s what we are all about.
RegTech offers so many benefits and a good RegTech solution provider will give your business complete
flexibility in what/how the solution is integrated and used. The solution should replicate your business processes in terms of compliance management, not the other way around. There are numerous providers around and not all of them work to your requirements, in fact we’ve come across many
that work the other way around.
I’d like to introduce TechFINIUM. Our RegTech solutions will replicate your business processes, enable you to proactively manage your regulatory and compliance and save your business
costs at the end of the day through seamless integration into your existing infrastructure.
We’d be delighted to offer you a free consultation on how you can transform your compliance management. Simply call us on 01494 546 089 or complete this short contact me now form and we will call you.
Who are we?
We are proud of our team of highly experienced & well connected professionals, who have been successfully delivering business solutions across diverse technologies and in multiple industry sectors.
Our particular expertise is in the financial services and insurance sectors.
Along with this, we are able to call on our extensive network of consultants, partners and associates to augment our delivery capacity. TechFINIUM currently has operations in the UK,
South Africa and India.