What is RegTech and how can it help you meet your regulatory/compliance requirements?
Regulatory Technology, commonly referred to as “RegTech” is a new term in many industries but it’s nothing to be intimidated by.
RegTech is simply applying technology solutions/tools to regulatory and compliance processes/tasks such as audits, risk management, inspections, reporting requirements etc.
RegTech aims to:
- Manage regulatory and compliance requirements
- Create efficiencies & improve productivity
- Automate and simplify processes as current regulatory/compliance processes tend to be extremely manual
- Digitize regulatory/compliance information
- Integrate systems
- Establish cost effective solutions
- Increase collaboration and information sharing
- Proactively identify risks in advance
- Remediate existing regulatory/compliance issues or gaps
Benefits of RegTech solutions:
- Automated processes – cost savings, efficiencies and reduced risk
- Digital datasets – information is securely stored and always accessible
- Information sharing – when processes are manual, it’s hard to share information with other stakeholders or partner groups. Digital datasets allows information to be shared easily and quickly.
- Integrated systems – systems are able to work together to identify gaps/risks and pull data from multiple sources
- Reporting and analytics – allows users to identify real-time risks, predict & forecast
- Proactive identification of risks/gaps
- Reduced consulting/remediation costs as issues are prevented or remediated proactively
- Ability to meet regulatory/compliance requirements
- Assistance with new regulations and processes that need to be completed in order to meet new regulatory/compliance requirements
How can you leverage RegTech?:
- First, you need to understand your existing regulatory and compliance requirements
- Secondly, you need to identify issues, gaps or areas for improvement in your current processes
- It’s important that you understand your existing technology capabilities – what it can do and can’t do
- Seek out information on RegTech solutions applicable to your needs
Looking for more information?
Below are some additional resources on RegTech:RegTech is the new FinTech: How agile regulatory technology is helping firms better understand and manage their risks
Deloitte, 2017
https://www2.deloitte.com/content/dam/Deloitte/ie/Documents/FinancialServices/IE_2016_FS_RegTech_is_the_new_FinTech.pdf
The changing landscape: How to use RegTech and make regulatory compliance your strategic advantage
PWC, 2016
https://www.pwc.com/ca/en/banking-capital-markets/publications/pwc-changing-landscape-2016-12-en.pdf
The Rise Of RegTech And What It Means For Your Business
John Humphries, 2016
https://www.forbes.com/sites/forbesfinancecouncil/2016/12/14/the-rise-of-regtech-and-what-it-means-for-your-business/#2de5a37c5935