Summary
What this article covers in 30 seconds
- Financial institutions need ways to automate analysis, understand impacts, change processes and refine reporting.
- RegTech can automate repetitive tasks, monitor regulatory change, generate reports and alert compliance staff.
- Firms need controls across communication channels and every stage of the customer journey.
- AI and ML have helped develop tools for managing risk and compliance.
Financier Worldwide Magazine’s feature, ‘RegTech rising, a regulatory revolution’, focuses on how financial services firms can fulfil compliance obligations efficiently. The feature addresses the role RegTech plays in reducing time spent on operational risk and compliance processes, along with cost savings.
Joe Norburn, CEO at Recordsure and TCC, explains the significance of compliance monitoring and RegTech as technology adoption accelerates across the sector.
RegTech and compliance monitoring
To master a wide range of legislative requirements, financial institutions need to automate analysis, understand impacts, change business practices and processes, and fine-tune reporting.
RegTech automates repetitive tasks, monitors regulatory changes in real time, generates reports and alerts financial institutions’ compliance staff to potentially fraudulent activity. This automation allows compliance personnel to focus on high-value work that augments their role and increases organisational efficiencies.
Joe Norburn said firms had been exposed to alternative communication channels over the last 12 to 18 months but were not fully engaged with them. As a result, new processes and controls are needed to ensure regulatory compliance and fair outcomes for customers across all communication channels and at every stage of the customer journey.
Implementation barriers and technology choices
While RegTech solutions aim to make regulatory compliance monitoring and risk reporting simpler for financial institutions, there are also barriers to implementation that firms need to overcome.
Joe Norburn said the accelerated deployment of new technology-led solutions supports business continuity and adaptation to remote working, while helping firms manage conduct risk, compliance and company culture. He also said the next challenge is to assess the new technology portfolio carefully and ensure alignment with long-term business strategy.
Technological advances in AI and ML have driven the development of intelligent tools to manage risk and compliance. In a broad and varied marketplace, financial institutions can now choose RegTech on their own terms, considering accuracy, suitability and scalability rather than being dependent on technology giants.
Joe Norburn concluded that the shift in customer behaviour and attitudes over the past couple of years is set to continue, and that firms investing in AI- and ML-driven solutions ahead of others are already seeing commercial benefits with evolving intelligent technologies.
Frequently asked questions
In Financier Worldwide Magazine, as a feature on how financial services firms can fulfil their compliance obligations efficiently.
RegTech automates repetitive tasks, monitors regulatory changes in real time, generates reports and alerts compliance staff to potentially fraudulent activity.
Joe Norburn says firms have been exposed to alternative communication channels and need processes and controls for compliance and fair outcomes across channels and the customer journey.
Firms can now choose RegTech on their own terms, taking into account the accuracy, suitability and scalability of solutions.