Financier Worldwide Magazine feature, 'RegTech rising, a regulatory revolution', focuses on how financial services firms can fulfil their compliance obligations efficiently. FWM addresses the remarkable role RegTech plays in reducing time spent on operational risk and compliance processes, along with considerate cost savings.
Joe Norburn, CEO at Recordsure and TCC, explains the significance of robust compliance monitoring - and RegTech, set by the pace of technology acceleration across the sector.
To master the wide range of legislation requirements, financial institutions need to find a way 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 FIs’ compliance staff to potentially fraudulent activity. Such automation allows compliance personnel to focus on high-value work that augments their role and increases organisational efficiencies.
As Joe Norburn, CEO at Recordsure & TCC, explains: “Over the last 12 to 18 months, firms have been exposed to alternative communication channels but are not fully engaged with them. As a result, there needs to be new processes and controls in place to ensure regulatory compliance and fair outcomes for customers across all communication channels and at every stage of the customer journey.”
While RegTech solutions strive to make regulatory compliance monitoring and risk reporting, among other things, a simpler endeavour for financial institutions, there are also particular barriers to implementation that financial institutions need to overcome.
Technological advances in AI and ML have driven the industry’s development of powerful, intelligent tools to manage risk and compliance.
In a broad and varied marketplace, financial institutions can now choose RegTech on their own terms – taking into consideration the accuracy, suitability and scalability of solutions – rather than being at the mercy of tech giants.
“Given the fundamental shift in customer behaviour and attitudes over the past couple of years, this trend is set to continue,” Joe concludes. “Forward-looking firms that invest in AI- and ML-driven solutions ahead of others are already reaping the commercial benefits and will continue to do so with ever-evolving intelligent technologies.”