RegTech brings about new advancements in technology, such as blockchain and machine learning, which address cost/effort areas such as data management, identity control, transaction and regulatory monitoring, and reporting.
Future acceleration and adoption of RegTech is dependent on overcoming several obstacles such as navigating regulatory complexity, enhancing ways to integrate into fragmented legacy infrastructures, and carefully managing the will of the workforce.
Financial institutions must consider investing in a strategic RegTech agenda that holds regulatory compliance as a competitive advantage rather than purely as cost. Investments in RegTech companies have more than tripled over the last five years. Given that compliance continues to remain a key challenge for many aspects of the financial ecosystem, the outlook looks extremely positive for increased investment and scale in this area.
A new article, RegTech is Here: Time to turn Regulatory Compliance into a Competitive Advantage, introduces RegTech, highlights the significance of increasing investments, underlines some of the obstacles and provides our point of view on how each of the three key parties – financial institutions, regulatory authorities and RegTech players – can each contribute to re-shaping the regulatory compliance ecosystem.
This post comes courtesy of Stockholm Fintech Hub partners 421 – a team of impassioned leaders with extensive financial, regulatory, and tech industry knowledge. 421 carefully identifies the possibilities and opportunities that new digital technologies bring to the financial industry as well as the challenges that come with realising their full potential.